Economics
BOE Gets Big Signal U.K. Economy Is Starting to Bounce Back
- PMI rose to 54 in May, beating the median estimate of 53
- Heat wave sees consumer spending grow strongly in May
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The biggest part of the U.K. economy grew more than forecast in May, backing up the Bank of England’s view that a recent slump was temporary and keeping it on track for an interest-rate increase in the summer.
A measure of services jumped to a three-month high of 54 from 52.8, beating the reading of 53 predicted in a Bloomberg survey. Taken with manufacturing and construction, it suggests the economy is on course for growth of 0.3 to 0.4 percent this quarter, said IHS Markit, which publishes the indexes. Expansion slowed to just 0.1 percent in the first three months of the year.