Investing.com - U.K. service sector activity expanded at a slower rate than expected in February, dampening optimism over the health of the economy, industry data showed on Wednesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index declined to 56.7 last month from a reading of 57.2 in January. Analysts had expected the index to rise to 57.5 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “Although the rate of expansion slowed in the vast services economy, growth has picked up in both manufacturing and construction."
He added that, "The three PMI surveys collectively indicated a slight acceleration in economic growth for a second successive month in February as a result, consistent with GDP growth picking up to 0.6% in the first quarter."
GBP/USD was trading at 1.5343 from around 1.5354 ahead of the release of the data, while EUR/GBP was at 0.7249 from 0.7244 earlier.
Meanwhile, European stock markets remained lower. London’s FTSE 100 dropped 0.15%, the EURO STOXX 50 dipped 0.15%, France's CAC 40 shed 0.1%, while Germany's DAX declined 0.4%.