The PMI reflects economic trends in the manufacturing and service sectors. January data from the IHS Markit / CIPS Flash UK Composite PMI shows a positive change of direction for the private sector economy at the start of 2020.

Business activity expanded for the first time in five months, driven by the sharpest increase in new work since September 2018.

Chris Williamson, chief business economist at IHS Markit, said: “The survey data indicate an encouraging start to 2020 for the UK economy.

“Output grew at the fastest rate for sixteen months amid rising demand for both manufacturing and services, suggesting business is rebounding after declines seen late last year.

“Intensifying political and economic uncertainty ahead of the general election has started to ease, encouraging more spending and helping push business expectations of future growth to its highest since mid-2015.

“It seems likely that the rise in the PMI kills off the prospect of an imminent rate cut by the Bank of England, with policymakers taking a wait and see approach as they assess the performance of the economy in the post-Brexit environment.”

Joe Healey, investment research analyst at The Share Centre, agreed: “January’s flash PMI estimates have exceeded market expectations showing a solid rebound in activity post-election. I can’t see the Bank of England cutting rates following this data.

“Early signs of a revival in confidence alongside the prospects of looser fiscal policy and a more supportive global environment should hold off decision-makers from cutting.”