UK recession 'will be avoided' after record monthly PMI spike

More robust economic data in August

The UK is likely to avoid a recession after August's IHS Markit Purchasing Managers index revealed the largest month-on-month rise in the survey's 20-year history.

According to figures for August, the business activity index rebounded from a reading of 47.4 in July, the lowest since April 2009, to 52.9. The monthly gain was the largest observed in the 20 years the survey has been conducted, with any figure above 50 indicating the economy is growing. The primary driver was a rise in both UK services output, which includes financial services, and new business. However, the survey pointed out while business confidence is now above pre-Brexit levels, it remains at a four-year low. Immediately following the release of the PMI figures sterling r...