Commenting on PMI figures out this week, Yael Selfin, head of macroeconomics at KPMG in the UK, said:
“PMI figures for September show businesses have largely shrugged off the initial shock of the referendum results. Rising employment opportunities in the service sector should keep consumers spending while manufacturing industry is enjoying the benefits of a weaker pound. However, with input prices rising, many of our clients are concerned about the impact on margins, so with the economy in a stronger place at least for now, we are likely to see more costs passed on to consumers in the short term.
“Despite Q3 likely to be weaker than previously projected, the improved outlook for 2016 overall should allow the Bank of England to pause in November rather than action any further cuts to interest rates. With further turbulence ahead, the BoE should save some of its scarce ammunition for later.”
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