Private sector return to growth in January....

Some positive economic indicators that we were hoping and expecting; as the "private sector returns to growth in January as receding political uncertainty lifts order books" according to the latest IHS Markit / CIPS Flash UK Composite PMI: 

"January data from the IHS Markit / CIPS Flash UK Composite PMI highlighted a decisive change of direction for the private sector economy at the start of 2020. Business activity expanded for the first time in five months, driven by the sharpest increase in new work since September 2018. The seasonally adjusted IHS Markit / CIPS Flash UK Composite Output Index – which is based on approximately 85% of usual monthly replies – rose to 52.4 in January, from 49.3 in December. As a result, the headline index registered above the crucial 50.0 no-change mark for the first time since August 2019.

The latest reading was the highest for almost one-and-a-half years and signalled a moderate expansion of business activity across the UK private sector economy. There were widespread reports that reduced political uncertainty following the general election had a positive impact on business and consumer spending decisions at the start of the year. Service providers experienced solid increases in business activity and incoming new work in January. Meanwhile, the performance of the manufacturing sector stabilised incomparison to the end of 2019, but still trailed behind the service economy amid ongoing weakness in export markets. Employment numbers increased for the second month runningin January, with marginal growth seen in both the manufacturing and service sectors."

The Flash UK Composite Output Index for January was at a 16-month high at  52.4 and Flash UK Services Business Activity Index was at a 16-month high at 52.9 (Dec final: 50.0) SOURCE: IHS Markit / CIPS Market Update Jan 24th 2020 

Read the latest IHS Markit / CIPS Flash UK Composite PM here.