Investing.com - Service sector activity in the U.K. expanded at the fastest rate since March 2012 last month, easing concerns over the country’s economic outlook, industry data showed on Wednesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 54.9 in May from a reading of 52.9 in April.
Analysts had expected the index to ease up to 53.0 last month.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data showed that new business increased at the sharpest pace for over three years last month.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “The data suggest that economic growth will have picked up in the second quarter compared to the 0.3% increase in GDP seen in the first quarter, shaping up to reach 0.5% if June sees sustained growth.”
He added, “The increasingly buoyant picture and improved outlook painted by the PMIs effectively kills off any chance of the Bank of England‟s Monetary Policy Committee voting for more stimulus such as asset purchases for the foreseeable future.”
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD climbing 0.37% to trade at 1.5366.
Meanwhile, European stock markets remained lower. London’s FTSE 100 dipped 0.6%, the EURO STOXX 50 declined 0.4%, France's CAC 40 shed 0.6%, while Germany's DAX fell 0.4%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 54.9 in May from a reading of 52.9 in April.
Analysts had expected the index to ease up to 53.0 last month.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data showed that new business increased at the sharpest pace for over three years last month.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “The data suggest that economic growth will have picked up in the second quarter compared to the 0.3% increase in GDP seen in the first quarter, shaping up to reach 0.5% if June sees sustained growth.”
He added, “The increasingly buoyant picture and improved outlook painted by the PMIs effectively kills off any chance of the Bank of England‟s Monetary Policy Committee voting for more stimulus such as asset purchases for the foreseeable future.”
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD climbing 0.37% to trade at 1.5366.
Meanwhile, European stock markets remained lower. London’s FTSE 100 dipped 0.6%, the EURO STOXX 50 declined 0.4%, France's CAC 40 shed 0.6%, while Germany's DAX fell 0.4%.