Source: The Express
THE FTSE 100 has surged to ANOTHER record high during Thursday morning trading, as the positive economic news continues to flow following the Brexit vote.
Britain’s top share index crept up by about 0.3 per cent to reach 7,211, indicating fresh confidence in the UK’s biggest companies as Britain gears up to leave the European Union (EU).
The index was boosted by Persimmon’s latest trading update this morning, which added to the picture of Britain’s positive economic outlook.
The homebuilder posted an eight per cent increase in full-year revenue to £3.14billion and a four per cent rise in total sales.
It comes as Britain’s manufacturing, construction and service output in December smashed expectations, figures this week have revealed.
Service sector expansion, which accounts for around 75 per cent of the economy, was measured at 56.2 form rom 55.2 in November by the highly-regarded Markit/CIPS services purchasing managers’ index (PMI).
Any reading above 50 indicates growth, expectations for the sector had been at 54.7.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Equity markets have got off to a solid start this year with the FTSE100 making new all-time highs this week, helped by a continuation of the trends seen at the end of last year, namely that of firmer commodity prices, improving economic data, and rising inflationary pressures.”
Economists believe fourth quarter economy growth is set to once again defy the Brexit doom-mongers who had warned of a slowdown following the vote to leave.
Scott Bowman, UK economist at Capital Economics, said:”December’s Markit/CIPS report on services suggests that the UK economy will turn in another strong performance in Q4 and hasn’t lost any momentum since the vote to leave the EU.”