Commenting on this morning’s UK PMI data, Melanie Baker, Senior Economist at Royal London Asset Management said:
“The UK composite PMI is now signalling strong growth, consistent with expectations of a robust pick-up in activity as lockdown restrictions continue to ease. Business optimism remains high, boding well for the near-term, assuming the government’s ‘roadmap’ out of lockdown remains on track.
“The improvement in the employment PMI was encouraging given how weak that indicator has been over the crisis and the heavy usage of the furlough scheme.
“However, in the Euro area and UK PMI data there were further signs of rising near-term inflationary pressure. That continues to partly reflect global manufacturing supply chain issues. Central banks will be alert for signs of rising underlying domestic inflationary pressure, but that is much less evident so far.”