EY hires Penney Frohling to lead UK Financial Services Strategy practice

14 February 2014

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  • Services activity remained robust in February
  • Rising backlogs and business optimism should support investment and employment
  • The survey results suggest economic growth in Q1 will continue at a solid pace

Andrew Goodwin senior economic adviser to the EY ITEM Club, comments on today’s PMI survey:

“Today’s PMI services survey provides further evidence that the UK recovery is still going strong. Although headline business activity index ticked down a touch on its level in January, it still remains well above the historical average.

“Taking February’s three activity surveys together, we appear set for another quarter of GDP growth at around 0.7% in Q1 2014, which keeps us on track for growth in the region of 2.7% over the year as a whole.

“The finer details of the services survey provide further good news, supporting the notion of a broader economic recovery. Rising backlogs and upbeat business confidence should support continued strength in business investment, which are shown to be performing particularly well in the latest national accounts.

“The strength of business sentiment is also being reflected in employment growth, which increased at a record pace in February. This is likely to translate into stronger wage growth, as companies begin to face skills shortages, fostering sustained strength in consumer spending.”