The S&P Global Services PMI for Britain rose from 53.4 in December to 54.3 in January to reach its highest level since May 2023. This report beat estimates of a 53.8 reading.
Faster hiring and the prospect of lower interest rates appear to be boosting UK consumer confidence, with economics director at S&P Global Market Intelligence Tim Moore offering the following observation: “New orders have also rebounded this winter as receding recession risks and looser financial conditions led to greater willingness-to-spend among clients.”
This result falls in line with the Bank of England’s forecast that the British economy would achieve modest growth during the early stages of 2024. Still, the BoE’s chief economist Huw Pill remains adamant that the central bank is unlikely to cut interest rates at its next policy meeting as wages continue to rise and the price of labor-intensive services remains high.
