UK service activity up in August

Thursday, 03. September 2020 10:35

United Kingdom's service sector recorded the sharpest rise in activity in August since April 2015, according to a new IHS Markit release. The Business Activity Index registered 58.8 in August, up from 56.5 in July. Meanwhile, the Composite Output Index stood at 59.1 in August, up from 57.0 in July.

"The current expansion is built on something of a false reality, with the economy temporarily supported by measures including the furlough and Eat Out to Help Out schemes. These props are being removed," said Chris Williamson, chief business economist at IHS Markit. "Worryingly, many companies are already preparing for tougher times ahead, notably via further fierce job cutting, the rate of which re-accelerated in the service sector in August to a pace exceeding that seen at the height of the global financial crisis."

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