The latest PMI figures suggest the UK economy is gradually gaining momentum. The Composite Index rose to 50.7, up from the prior final of 50.3, marking a modest but encouraging acceleration in private sector activity.

The services sector remains the key driver of growth, with the services index climbing to 51.3, its strongest reading this year. Meanwhile, manufacturing showed signs of recovery, improving to 47.7 from 46.4, though still in contraction territory.

Together, these figures reflect a cautiously optimistic outlook. While manufacturing lags, the resilience of services continues to anchor the region's fragile economic rebound. This latest update leaves the UK RPI at 13 and the RPI-P at 24. This means that economic activities continue to stay ahead of the expectations of the UK economy.

The flash Composite Purchasing Managers’ Index (PMI) provides an early estimate of current private sector business activity by combining information obtained from surveys of the manufacturing and service sectors of the economy, around 650 companies in each case. The flash data are released around ten days ahead of the final report and are typically based upon around 75-85 percent of the full survey sample. Results covering a range of variables including manufacturing output, employment, new orders, backlogs and prices are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The survey is produced by S&P Global.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' surveys, investors will know what the economic backdrop is for the various markets. The flash PMIs are particularly closely watched as they provide a wide ranging look at economic developments and some of the most up to date information available. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.