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- UK's service sector growth picks up more than expected
UK's service sector growth picks up more than expected
Activity in
the British service sector increased at a faster rate in May, and to a greater
extent than forecast by economists, as new business intakes increase the most
in more than three years, data from a survey by Markit Economics and the
Chartered Institute of Purchasing and Logistics (CIPS) showed Wednesday.
The
seasonally adjusted purchasing managers' index (PMI) for the service sector
increased to
The sharp
increase in activity was driven by a combination of higher sales volumes,
promotional activities and new product launches, the survey showed.
In line
with the upturn in activity, firms increased their workforces for the fifth
consecutive month amid evidence of marginal capacity pressures and with positive
expectations for the coming year.
Input price
inflation in the services sector continued the downward trend in May and hit
the lowest level in twelve months. Factory gate prices decreased modestly
during the month amid competitive pressures.
At the same
time, business confidence was a little firmer in May as entrepreneurs were
encouraged by current trends in new work, and expect a better economic climate
to support expansion.
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