Investing.com – The service sector in the U.K. grew more-than-expected in January, rising to an eight-month high, data showed on Thursday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 54.5 in January, after dropping to 49.7 in December.
Analysts had expected the index to rise to 51.1 in January.
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 Markit said, “The service sector rebounded in January as the country thawed out from the coldest December in a century. But the underlying trend remains one of only very modest growth, and well down on the strong rate seen in the first half of last year.”
He added, “Looking ahead, service providers appear nervous about the future, cutting payroll numbers again in January, despite reporting an improvement in business confidence about the year ahead.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.44% to hit a three-month high of 1.6261.
Meanwhile, European stock markets were mixed. The FTSE 100 shed 0.28%, the EURO STOXX 50 fell 0.31%, France’s CAC 40 dropped 0.87%, and Germany's DAX was up 0.04%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 54.5 in January, after dropping to 49.7 in December.
Analysts had expected the index to rise to 51.1 in January.
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 Markit said, “The service sector rebounded in January as the country thawed out from the coldest December in a century. But the underlying trend remains one of only very modest growth, and well down on the strong rate seen in the first half of last year.”
He added, “Looking ahead, service providers appear nervous about the future, cutting payroll numbers again in January, despite reporting an improvement in business confidence about the year ahead.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.44% to hit a three-month high of 1.6261.
Meanwhile, European stock markets were mixed. The FTSE 100 shed 0.28%, the EURO STOXX 50 fell 0.31%, France’s CAC 40 dropped 0.87%, and Germany's DAX was up 0.04%.