- Chris Williamson, an economist at Markit
The U.K. economy accelerated in the second quarter. This is clear when being based on the latest data from all three major sectors. Manufacturing, construction and services sectors performed well in the last several months, giving domestic economy a healthy boost to rebalance its prosperity.
On Tuesday the Sterling climbed against 12 of 16 major counterparts, with the cable strengthening the most in four weeks, as the U.K. currency benefited from stronger-than-expected domestic fundamentals, as well as upbeat data from Europe, which diminished hopes for a fresh easing later this week. A gauge of activity in the services sector, which accounts for majority of overall economic activity, climbed to 58.7 in April, following 57.6 a month earlier. Despite another move further from the threshold level, the final reading fell short of market's expectations for a 57.8 reading. The index has been fluctuating above the 50 level since the start of last year.
In the three months to April, a level of optimism among the U.K. small and medium-sized companies surged to the highest level since 1988, the CBI published this week. Domestic and external demand picked up as well, while employment strengthened sharply over the period and is likely to climb further. All these facts are likely to force Carney to revise his policy outlook this week.
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