Investing.com - Service sector activity in the U.K. expanded at a slower rate than expected in November, growing at the weakest pace in 23-months, industry data showed on Wednesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 50.2 in November from a reading of 50.6 in October.
Analysts had expected the index to ease up to 51.1 last month.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
A tough economic climate was commonly reported to have undermined efforts to secure new business. This also weighed on service sector confidence, with sentiment falling in November to the lowest of 2012 so far.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “Coming on the back of disappointing surveys of manufacturing and construction, the survey adds to worrying signs that the economy faces a renewed slide back into contraction after the temporary growth surge seen in the third quarter.”
Following the release of that data, the pound trimmed gains to trade little changed against the U.S. dollar, with GBP/USD adding 0.02% to trade at 1.6106.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.5%, the EURO STOXX 50 climbed 0.6%, France's CAC 40 added 0.6%, while Germany's DAX advanced 0.5%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 50.2 in November from a reading of 50.6 in October.
Analysts had expected the index to ease up to 51.1 last month.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
A tough economic climate was commonly reported to have undermined efforts to secure new business. This also weighed on service sector confidence, with sentiment falling in November to the lowest of 2012 so far.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “Coming on the back of disappointing surveys of manufacturing and construction, the survey adds to worrying signs that the economy faces a renewed slide back into contraction after the temporary growth surge seen in the third quarter.”
Following the release of that data, the pound trimmed gains to trade little changed against the U.S. dollar, with GBP/USD adding 0.02% to trade at 1.6106.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.5%, the EURO STOXX 50 climbed 0.6%, France's CAC 40 added 0.6%, while Germany's DAX advanced 0.5%.