Expectations for growth in the U.K. private sector have picked up in recent months as two separate surveys show that optimism has increased, according to Financial Times. On Monday, Markit Economics and KPMG reported that British manufacturing and service sector companies saw a brighter outlook. The portion of services companies expecting a rise in demand was 44.8% more than the percentage of companies expecting a fall over the next year, while the balance of companies that expecting to hire in that time reached 23.2%, which is the best reading since April 2007.
The uptick of services expectations is especially notable given the sector’s recent uneven recovery, and the improved employment outlook may ease concerns that the effect upcoming public sector job cuts might be dampened somewhat by private sector hiring. Meanwhile, the report found that a balance of 67.8% of manufacturers are expecting a rise in prices rather than a fall, which is the highest reading in history. The balance for the services sector is 55.5%, and also a record. Separately, Grant Thornton showed that business sentiment in developed countries is closing the gap to the outlook in emerging markets, which has remained strong.