UK business activity grows at fastest pace in five years after lockdown eased – business live

Moreover, the economy may be performing slightly better than what we’re seeing here.

The PMIs have so far underestimated the scale of the rebound when compared to the official data. This has been true for manufacturing, a sector that was one of the first to emerge from lockdown and consequently has had the best opportunity to build momentum.

While it’s certainly encouraging to see growth, there are red flags that cast doubt over how long the economy can continue to expand at such a pace, and how much of this is a reflection of the emergence from lockdown only.

The worry continues to be that if businesses or consumers sniff further danger ahead – for example the increased likelihood of a second lockdown – they rein in spending and any nascent recovery stalls.

That’s something the UK economy can ill afford with an end to the furlough scheme looming and the uncertainty of Brexit on the horizon.