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U.K. service sector activity slows in December

Published 01/06/2014, 04:40 AM
GBP/USD
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Investing.com - Service sector activity in the U.K. expanded at a slightly slower than expected rate in December, data on Monday showed, but confidence rose and the economy still looks likely to have expanded strongly in the fourth quarter.

In a report, market research group Markit said the Markit/CIPS Services Purchasing Managers Index declined to a six month low of 58.8 in December from 60.0 in November. Analysts had expected an unchanged reading.

On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.

"More strong growth looks likely as we move into 2014," Markit's chief economist, Chris Williamson said. "It is perhaps inevitable, however, that we may see the rate of growth slow compared with the unusually strong pace seen in recent months."

Following the release of that data, the pound extended losses against the U.S. dollar, with GBP/USD shedding 0.48% to trade at 1.6341.

Meanwhile, European stock markets remained mildly higher. London’s FTSE 100 dipped 0.09%, the EURO STOXX 50 rose 0.19%, France's CAC 40 added 0.07%, while Germany's DAX tacked on 0.09%.





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