Panic over. No double dip – Telegraph Blogs

Panic over. No double dip – Telegraph Blogs

Phew! Services rebounded strongly in January, according to the latest purchasing managers’ survey from Markit/CIPS. That ought to mean the UK economy is not heading for a double dip after all, at least for the time being.

The rebound shouldn’t have been so surprising after the largely weather induced negative of December, but you’d be amazed how many people had begun to think another recession a done deal. Despite the shock setback in fourth quarter output, the recovery seems to be broadly on track. The strong services data follows buoyant manafacturing survey evidence earlier this week and an insipid recovery in construction.