Britain’s services sector, which accounts for more than 75% of the country’s GDP, accelerated in December with the sector’s post-Brexit revival continuing at speed. That’s according to the latest PMI survey from IHS Markit.
The services sector — which includes everything from banking to waitressing — drew a reading of 56.2 in the month, that’s compared with a 55.1 reading in December, and ahead of the flash estimate of 54.7.
The numbers from IHS Markit provided the best reading for the sector in 17 months.
“The final batch of UK PMI survey data for 2016 from IHS Markit and CIPS signalled that the dominant UK service sector expanded sharply in December, rounding off the strongest quarter of the year,” IHS Markit said in a statement.
“The rate of expansion of activity accelerated for the third month running to the sharpest since July 2015, fuelled by stronger growth in new work. Employment rose at a pace unchanged from November’s seven-month high, and sentiment towards the 12-month outlook strengthened despite ongoing uncertainty regarding Brexit and European elections,” it continued.”
The purchasing managers index (PMI) figures from IHS Markit are given as a number between 0 and 100.
Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the number is, the better things look for the UK.
Here is IHS Markit’s chart of the PMIs longer-term trend (note the massive pick up since July):