Howard Archer at IHS Global Insight said the business activity index is forecast to have reached 56 which would mean an average of 56.3 for the third quarter – below the second quarter average of 58.3. However, Archer said: “We remain largely upbeat about the prospects for the services sector. Relatively decent economic activity should keep supporting demand across a wide range of business services.” Manufacturing output data out on Wednesday is expected to show a rebound of 0.5 per cent month-on-month in August.
Meanwhile, the total trade deficit will be announced on Friday, and is expected to have narrowed to £2.5bn in August after jumping to £3.4bn in July.
On the corporate calendar, Greggs will report tomorrow and Tesco is set to announce its half-year results on Wednesday, with pressure mounting on boss Dave Lewis to deliver.