UK private sector growing at fastest rate for nine months fuelling hopes the recession is already over

Britain’s private sector is growing at the fastest pace for nine months according to new figures adding to evidence that the recession is already over.

The purchasing managers’ index (PMI) showed business activity picking up speed – in stark contrast to data showing a deepening downturn in Germany.

UK GDP shrank for two quarters in a row late last year, meeting the technical definition of recession, but there are signs it has started to bounce back.

The ‘flash’ PMI survey for February gave a reading of 53.3 on an index where any score above 50 shows activity is growing.

Chris Williamson, at S&P Global Market Intelligence, which compiled the figures, said: ‘Faster growth has now been recorded for four straight months.’

He said the survey pointed to the economy growing by between 0.2 per cent and 0.3 per cent in the first quarter of this year, and the highest level of business optimism for two years.

Simon Wells, an economist at HSBC said: ‘We are not out of the woods, but today’s PMIs add weight to the argument that the UK economy has turned a corner.’

The figures come days after Bank of England Governor Andrew Bailey suggested that the ‘very small’ recession at the end of last year could already be over.

The UK looks set to emerge from recession just as Germany enters one.

Yesterday’s PMI figures from the country pointed to a deepening contraction which was led by a ‘sharp and accelerated reduction in manufacturing’.