Businesses return to growth


UK businesses have returned to growth this month following a downturn driven by the England-wide lockdown in November, with the IHS Markit purchasing managers’ index (PMI) climbing to 50.7 in December from 49 in November on an index where a figure above 50 indicates expansion. Manufacturing led the way, with the sector’s PMI reading hitting a three-year high of 57.3, while the services sector, which makes up about 80% of the economy, saw a reading of 49.9. Chris Williamson, chief business economist at IHS Markit, said the PMI data suggests the blow dealt to the economy by the second wave of coronavirus infections “has so far been far less harsh than the first wave.” However, he added that the recovery “lacked vigour”.


Read more: City AM

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