today reported growth in Britain’s dominant services sector unexpectedly accelerated to a nine-month high in July, according to a survey that may sooth some worries about whether Britain is slipping into recession before Brexit.
The IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI), published on Monday, rose to 51.4 from 50.2 in June, above all forecasts in a Reuters poll of economists that had pointed to an unchanged reading. The survey showed the fastest influx of new export orders since September 2018, which businesses said was aided by the pound’s fall last month when it fell 4% against the U.S. dollar.
Not all services companies, which comprise three-quarters of private sector British economic output, benefited equally. Activity in business services companies contracted at a rate exceeded only once in the past 10 years, IHS Markit said. “The best-performing sector was consumer services, highlighting how the economy remains dependent on consumer spending to avoid contraction,”
Last week the Bank of England cut its growth forecasts due to Brexit worries and a slowing global economy, and warned of a one-in-three chance that the economy would be shrinking in annual terms by early 2020, even without a disruptive Brexit.
The composite PMI, which combines the services, manufacturing and construction industries, rose to 50.3 from June’s 49.2.
A global German pharmaceutical firm is set for new UK HQ at Heathrow.
Merck Serono is set to relocate to London’s Heathrow after signing a new 10-year lease. Pharmaceutical group Merck Serono has signed an agreement with London firm M&G Real Estate to take space at 5 New Square, Bedford Lakes near Heathrow for its new UK headquarters. Merck Serono focuses on biopharmaceuticals and is part of Germany-based pharmaceutical giant Merck KGaA.
The pharmaceutical group will take the first floor of the building, covering a total of 20,655 sq ft in the business park that also houses the likes of IBM, Birds Eye, Cisco Systems and World Duty Free.
Aaron Pope, Asset Manager, Offices at M&G Real Estate, says “Demand for newly refurbished Grade A office space in the south east remains strong, particularly at developments such as New Square, which is close to Heathrow airport and a stone’s throw from West London.
“New Square’s number of high calibre national and international occupiers highlights the draw of well-connected and specified offices for a broad range of businesses.”
Brilliant news for Derby based Bombardier
who beat off bids by Chinese and Malaysian firms to win a massive new contract in North Africa, despite #Brexit. Bombardier’s share of the £3.7 billion deal is worth £2.34 billion, to build monorail carriages for Egypt.
Take a look at this graph showing the EU’s abysmal trade vis a vis world trade