Uk Close To Exiting Recession

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Uk Close To Exiting Recession

UK Close To Exiting Recession, According To Pmi Data

According to a recent PMI survey, it appears that the UK economy is now very close to exiting the technical recession. Although the services activity in the UK remains weak, the data is still positive enough to get the UK out of recession.

According to the UK S&P Global PMI, March's reading was 52.8, while last month's reading was 53.0. Although the reading shows a change of -0.2, it is still above 50, which indicates growth.

Uk Services Sector Lifts The Economy

The survey also shows that UK businesses are doing much better than Germany and France. If we look at both these countries (Germany & France), the overall activity shows a contraction. Similarly, Spain and Italy also show readings below expectations.

Overall, the UK's PMI reading showed strong growth during March, driven by a rebound seen in the services sector. In a sense, we can say that the growth arising from the services sector will help the UK to get out of recession.

According to one expert, the survey also showed a positive change in both consumer and business spending. This comes at a time when the UK faces high borrowing costs and strong inflation.

Looking ahead, the GDP data for Q1 2024 is due to be released on the 10th of May. This means there's still a couple of weeks before we get official confirmation about whether the UK has got out of recession or not.

The data from Thursday shows that March was a good month for the services sector as it showed a healthy gain.

According to an economist from RSM UK, a combination of tax cuts, low interest rates, and a decline in inflation will support consumer spending. That's why they added that the GDP growth during Q1 2024 will be near 0.2%.

That's why many economists still believe that the Bank of England will wait till June or at least August to start the rate cuts.

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