Pound Sterling seen advancing on the US Dollar
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The leader of Les Patriotes shared a recent report published by the French daily La Tribune showing the UK’s economic recovery trumping that of the eurozone. The French newspaper tweeted: “In the United Kingdom, the economic recovery is faster than in Europe.
“In the eurozone, the trend is also upward but it is less dynamic than that of the British.”
Mocking those who believed Brexit would mean an economic catastrophe for the UK, Mr Philippot said: “The economic recovery is faster in the United Kingdom than in the eurozone!
“Weird, I thought Brexit had to kill them.
“Come on, let’s get out of the European death row.
“Frexit! Free France, quickly!”
The UK service sector saw its biggest increase in activity in 24 years in May, with pubs and restaurants reopening after months of closure, according to the latest IHS Markit survey.
With 62.9 points in May, the index indeed reached its highest level since May 1997 and exceeded the initial estimate which gave it to 61.8.
Tim Moore, Economic Director of IHS Markit said: “The results of the latest survey pave the way for a spectacular UK GDP growth rate in the second quarter of 2021, driven by the return of customers to commerce in part of the economy after winter lockdown.”
The faster progress was attributed in part to the UK’s successful vaccination strategy.
Nearly six in ten people received at least one dose of the vaccine in early June in the UK, compared to just 39 percent of Europeans, according to CovidTracker.
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New orders in the UK construction sector are also growing at rates not seen in 24 years although the pent-up demand is putting significant pressure on prices, according to the survey.
The survey also found that raw material prices were increasing with inflation hitting levels not seen since records began in 1997.
Thousands of projects had been delayed due to the Covid crisis but renewed optimism that the pandemic’s end is in sight has seen many restart in earnest.
As a result, the PMI recorded a score for the sector of 64.2 in May, anything above 50 is seen as a sector in growth, beating the 61.6 score in April.
It marks the fourth consecutive month of growth for the sector.
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House building was the best-performing category, followed by commercial work and finally civil engineering although this sub-sector saw a slight fall in the speed on growth compared with last month.
The survey found that the increase in work on commercial projects was the steepest since August 2007, reflecting strong demand conditions following the reopening of customer-facing areas of the UK economy.
Around 47 percent of the survey panel reported higher volumes of new work, while only 11 percent signalled a reduction.
As a result of the rise in demand, the number of jobs in the sector also rose, with job creation at its fastest level since July 2014 and the use of sub-contractors jumped to record levels.
But the demand is pushing up prices and delivery times are lengthening as stockpiling by some firms is taking place, the survey found.
Construction companies remain upbeat about their growth prospects for the next 12 months, with 61 percent predicting further rises in business activity, while just 8 percent anticipate a decline, it added.
Positive sentiment was mostly put down to resurgent customer demand, alongside optimism about the UK economic outlook following the successful vaccine rollout.
Duncan Brock, group director at the Chartered Institute of Procurement & Supply (CIPS), said: “The construction sector continued its expansion programme with a phenomenal acceleration in growth and the strongest for seven years as new orders filled in at the fastest rate for almost a quarter of a century.”
He added: “With inflation for goods and raw materials at a 24-year high, companies will be concerned that much-needed profits will be eaten away as building projects take shape and could be held up by some of the longest delivery times on record.
“Skills shortages are also becoming a problem, with recruiters finding talented labour hard to find, as job creation was at robust levels and the threat of staffing cutbacks has become a distant memory.”
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