Investing.com – Service sector activity in the U.K. rose significantly more-than-expected in March, rising to the highest level in 13 months, industry data showed on Tuesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index jumped to 57.1 in March, after falling to 52.6 in February.
Analysts had expected the index to rise to 52.9 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, growth of new business was the sharpest for a year amid reports of stronger demand. Higher staffing levels also reflected optimism regarding future activity, with over 50% of respondents expecting growth over the coming twelve months.
Meanwhile, high energy and fuel costs drove input price inflation to the second strongest since mid-2008. There were also reports of rising food costs and increased wages being paid.
Commenting on the report, Paul Smith, senior economist at Markit said, “Allied to a robust underlying growth trend in manufacturing and the recent improvement in construction, we look for GDP in Q1 to have rebounded by as much as 0.8% on a quarterly basis in the first quarter.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD climbing 0.53% to hit 1.6218.
Meanwhile, European stock markets were down. The EURO STOXX 50 dropped 0.55%, France’s CAC 40 slid 0.58%, the FTSE 100 slumped 0.35%, while Germany's DAX declined 0.3%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index jumped to 57.1 in March, after falling to 52.6 in February.
Analysts had expected the index to rise to 52.9 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
According to the data, growth of new business was the sharpest for a year amid reports of stronger demand. Higher staffing levels also reflected optimism regarding future activity, with over 50% of respondents expecting growth over the coming twelve months.
Meanwhile, high energy and fuel costs drove input price inflation to the second strongest since mid-2008. There were also reports of rising food costs and increased wages being paid.
Commenting on the report, Paul Smith, senior economist at Markit said, “Allied to a robust underlying growth trend in manufacturing and the recent improvement in construction, we look for GDP in Q1 to have rebounded by as much as 0.8% on a quarterly basis in the first quarter.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD climbing 0.53% to hit 1.6218.
Meanwhile, European stock markets were down. The EURO STOXX 50 dropped 0.55%, France’s CAC 40 slid 0.58%, the FTSE 100 slumped 0.35%, while Germany's DAX declined 0.3%.