Tim Moore, economics director at S&P Global Market Intelligence, stated that 'domestic political stability helped to bolster customer demand.' This indicates that the recent political climate has positively influenced consumer behavior, encouraging spending and investment in the services sector.
Rob Wood, chief UK economist for Pantheon Macroeconomics, expressed that last month's data is 'strong enough for the MPC to wait until November to cut interest rates again,' highlighting that economic stability allows the monetary policy to remain cautious in its approach.
Moore reflected on the recent trends, noting, 'the modest post-election bounce in business activity expectations faded... Some firms cited concerns about policy uncertainty in the run up to the autumn Budget,' pointing out that while initial optimism was present, uncertainty could temper future growth.
Moore mentioned that 'hopes of interest rate cuts and steady improvements in broader economic conditions helped to support confidence,' suggesting that expectations on monetary policy directly influence business sentiment and growth in the services sector.
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