Fresh survey data have reignited debate over the strength of the United Kingdom’s economic outlook, with one prominent business monitor reporting signs of renewed activity even as other polls continue to depict a subdued and fragile recovery.

The latest findings from a leading business survey indicate an uptick in private-sector output, supported by modest improvements in services and stabilising demand in parts of manufacturing.

Respondents cited easing cost pressures and more predictable supply conditions compared with the volatility seen in recent years.

The survey’s composite index edged higher, suggesting that some firms are experiencing a gradual return of confidence and investment planning.

However, this comparatively optimistic reading stands in contrast to other recent indicators that show weaker consumer spending, constrained household budgets and patchy capital expenditure.

Separate polling of businesses and households has highlighted ongoing caution, with many companies reporting limited pricing power and subdued order books.

Retail footfall and consumer sentiment surveys continue to reflect cost-of-living pressures, even as headline inflation has moderated from previous peaks.

Economists note that the divergence may reflect sectoral imbalances.

Professional services, technology and certain export-oriented manufacturers appear to be faring better than consumer-facing industries and construction, where higher borrowing costs and softer demand remain headwinds.

Differences in methodology and sample composition between surveys may also account for the gap in sentiment readings.

Financial markets have reacted cautiously to the mixed signals.

Sterling and gilt yields have shown limited movement, suggesting investors are awaiting clearer evidence of sustained growth before reassessing expectations for monetary policy.

Analysts say forthcoming official gross domestic product figures and labour market data will be critical in determining whether the more upbeat survey marks the beginning of a broader revival or a temporary stabilisation.

Business groups have urged policymakers to provide clarity on fiscal and regulatory direction to underpin confidence.

While acknowledging signs of resilience in certain sectors, they emphasise that durable recovery will depend on productivity gains, investment in skills and infrastructure, and stable trade conditions.

The conflicting data underline the complexity of the UK’s current economic position: tentative improvement in some corners, persistent strain in others.

Whether the more optimistic survey proves prescient or premature will become clearer as hard data for the first quarter are released in the coming weeks.