UK business activity grows again, lifting recovery hopes

LONDON: Britain's private sector economic activity returned to growth in July on the easing coronavirus lockdown, a key survey showed Friday, lifting hopes of a swift recovery from recession. The composite purchasing managers' index (PMI) hit a 61-month peak at 57.1 points in July, registering the fastest expansion since June 2015, compilers IHS Markit and the Chartered Institute of Procurement and Supply (CIPS) said in a statement.

That compared with a June reading of 47.7, which stood below the key 50-level that separates contraction and expansion. The PMI has plunged since March on coronavirus fallout and last stood above 50 in February before the deadly pandemic erupted in Britain.

"July data indicated a marked improvement in business conditions across the UK private sector economy following the easing of lockdown measures to contain the spread of the coronavirus disease," Markit/CIPS added in the statement.

In other upbeat news on Friday, official data showed that UK retail sales rebounded by almost 14 percent in June as non-essential shops reopened from lockdown, extending May's 12-percent gain. Sales had however slumped by a record 18 percent in April after the country entered full lockdown on March 23.