Not terrible, but not that encouraging either. That’s the consensus opinion among economists after the latest round of PMI surveys on the UK economy, with a disappointing slowdown in the key services sector offsetting buoyant confidence among manufacturers. Paul Hollingsworth at Capital Economics said it looks like the “economy is struggling to re-accelerate in the third quarter after a disappointing first half of the year”, but believed there are enough positive signs to expect some improvement when official GDP figures are released: The big picture is that the average level of the all-sector PMI in Q3 so far – which weights together the manufacturing, services and construction surveys – is consistent on the basis of past form with quarterly GDP growth of about 0.4 per cent. Although note that the survey overstated the economy’s strength in Q2. Read More