Investing.com – Service sector activity in the U.K. declined more-than-expected in February, data showed on Thursday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 52.6 in February, after rising to an eight-month high of 54.5 in January.
Analysts had expected the index to ease down to 54.0 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, forward-looking indicators from the survey were positive, signaled by new business rising at a solid rate and confidence strengthening to a nine-month peak.
Input price inflation remained historically steep, with fuel and utilities widely reported to have increased. There was also evidence of higher food costs and reports that the rise in VAT continued to be felt.
Commenting on the report, Paul Smith, senior economist at Markit said, “February saw growth of the UK service sector return to the modest rates seen prior to the weather related readings of December and January, leaving it on course to deliver around 0.3% q/q growth for Q1.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.26% to hit 1.6281.
Meanwhile, European stock markets were higher. The EURO STOXX 50 gained 0.36%, France’s CAC 40 added 0.33%, the FTSE 100 increased 0.4%, while Germany's DAX was up 0.36%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 52.6 in February, after rising to an eight-month high of 54.5 in January.
Analysts had expected the index to ease down to 54.0 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, forward-looking indicators from the survey were positive, signaled by new business rising at a solid rate and confidence strengthening to a nine-month peak.
Input price inflation remained historically steep, with fuel and utilities widely reported to have increased. There was also evidence of higher food costs and reports that the rise in VAT continued to be felt.
Commenting on the report, Paul Smith, senior economist at Markit said, “February saw growth of the UK service sector return to the modest rates seen prior to the weather related readings of December and January, leaving it on course to deliver around 0.3% q/q growth for Q1.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.26% to hit 1.6281.
Meanwhile, European stock markets were higher. The EURO STOXX 50 gained 0.36%, France’s CAC 40 added 0.33%, the FTSE 100 increased 0.4%, while Germany's DAX was up 0.36%.