Post-Brexit bounce in UK factories sparks Bank of England rate cut doubts
British manufacturing staged one of its sharpest rebounds on record in August, a post-Brexit surprise that could prompt the Bank of England to rethink the need to cut interest rates again if other surveys confirm the trend.
The recovery far outstripped all economists’ forecasts, delivering the strongest signal yet that Britain’s economy is performing better than initially feared after the June 23 referendum vote to leave the European Union.
The Markit/CIPS Purchasing Managers’ Index (PMI) – a closely watched gauge of factory activity – jumped to a 10-month high of 53.3 in August after tumbling to a three-year low of 48.3 in July in the immediate aftermath of the referendum.
