Business activity is rebounding strongly, but employers continue to lay off workers amid fears about the economy, according to a closely watched survey.
The IHS Markit Purchasing Managers Flash Index hit 60.3 in August, down from 57 in July and near a seven-year high. Any reading above 50 indicates the economy is growing, so the numbers suggest that business activity across the economy is recovering sharply after bottoming out in April.
The service and manufacturing sectors saw an increase in new orders and an increase in production.
The IHS Markit activity index for the service sector rose from 56.5 in July to a three-year high of 60.1. The production index of the manufacturing sector fell from 59.3 to 61.6.
A natural resumption of economic activity