UK service sector improves a new survey finds

The UK’s service sector activity picked up in November after falling in the previous month a closely-watched survey finds.UK service sector improves a new survey findsThe Markit/Cips services purchasing managers’ index (PMI) rose to 52.1 in the month, up from 51.3 in October. Any figure above 50 indicates growth.

The service sector accounts for about two thirds of UK economic activity.

The modest increase in overall activity in the sector was due to higher volumes of new work and a rise in marketing, the survey said.

However, there was some evidence that growth was curtailed by low bank lending and government spending cuts.

The eurozone debt crisis was also undermining confidence, Markit and the Chartered Institute of Purchasing and Supply said.

The rate of input price inflation also increased slightly, they added.

“The service sector saw a modest expansion again in November, holding up in the face of growing gloom at the health of the domestic economy and heightened uncertainty regarding the euro area’s debt crisis,” said Chris Williamson, Markit’s chief economist.

“However, with manufacturing contracting at a steep pace, the weak growth in services means the economy is likely to have stagnated in the fourth quarter.”

December 12, 2011  Tags: , , , , , , , ,   Posted in: Business Growth, Business Jobs, Business Win, Exporting Businesses, Growing Business, Growing Economy, Uncategorized, Winning Business

One Response

  1. Gabby - December 21, 2011

    You’ve really helped me undetrsnad the issues. Thanks.

Leave a Reply