File photo: Seagulls fly over people walking on the Southbank of the River Thames backdropped by the business and financial district in central London on November 15, 2024. Photo by HENRY NICHOLLS / AFP.
London: Britain received some rare positive economic news Friday as better-than-expected retail sales and business activity data provided a boost to the Labour government ahead of its annual budget presentation.
The UK purchasing managers' index (PMI) published by S&P Global accelerated in October to 51.1 from 50.1 in September, beating expectations.
A reading above 50 indicates growth, while a figure below 50 shows contraction.
The latest figure "brings hope that September was a low point for the economy from which business conditions are starting to improve", said Chris Williamson, chief business economist at S&P Global Market Intelligence.
But he warned that business confidence remains "subdued by historical standards".
In separate data released by the Office for National Statistics, retail sales unexpectedly grew in September, with a notable rise in demand for gold from online jewellers as the precious metal struck record-high prices.
The positive signals come as Britain braces for widely expected tax increases in finance minister Rachel Reeves's budget on November 26 to help balance the books.
Prime Minister Keir Starmer's government increased a tax on businesses in its inaugural budget last October, which experts say has hindered UK economic growth.
Britain's economic growth slowed to 0.3 percent in the second quarter from 0.7 percent growth in the first three months of this year.
The Labour government is also facing high inflation and strained public finances, with borrowing at a five-year high.
