The three key sectors of the UK economy all showed growth in May for the first time since the economy nose-dived under the last Labour Government as a result of their disastrous spending policies and their failure to regulate the banks.
Based on surveys of managers rather than real output or expenditure the PMI reports are watched very closely by financial markets and policymakers and are seen as important forward indicators of activity.
The results from construction, manufacturing and services sectors suggest growth in each area, the first such outcome for a year. There was the biggest increase in new business for three years and since the coalition took office, and many analysts are rethinking their forecasts for the current second quarter to respectable rather than marginal growth.
Key findings were that:
· Construction has returned to growth after six months of contraction;
· The level of house building has increased;
· There was the biggest increase in new business for three years
· There has been modest employment growth
· Staff had been hired not only to deal with current workloads but also in anticipation of increased work in coming months.
· The PMI survey found that house building in May was at its fastest pace for 26 months
All the signs are that the British Economy is lifting out of the doldrums, and we are beginning again to see growth.