UK Service Sector Grows and Pound Surges

The UK’s service industry rebound sharply in August with the Markit/CIPS Purchasing Managers’ Index (PMI) publishing the sector’s biggest month on month gain in 20 years. As a consequence the Pound hit a seven week high against the dollar after initially falling following the referendum result. This has led some experts to comment that the initial shock of the referendum result may be subsiding and that the UK is not heading towards another recession. It is suggested that this will instead give the Prime Minister a position of strength in negotiating a strong Brexit settlement with the EU.