Investing.com – Service sector activity in the U.K. improved unexpectedly in December, expanding at the fastest pace since July, industry data showed on Thursday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose by 1.9 points to 54.0 in December from a reading of 52.1 in November.
Analysts had expected the index to decline by 0.6 points to 51.5 in December.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The final month of 2011 provided a positive end to the year for UK service providers as activity and incoming new business both rose at their strongest rates since July.
Still, a number of panelists continued to report that the economic climate remained tough, reflected by continued margin, while business confidence matched the two-and-a-half year low seen in September.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The December survey rounds off a reasonable fourth quarter for the service sector, which is likely to again provide the main stimulus to overall economic growth.”
He added that, “Looking ahead, companies grew increasingly worried about the coming year, suggesting that the upturn may prove short-lived as we move into 2012.”
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.31% to trade at 1.5570.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 dropped 0.9%, France’s CAC 40 fell 0.7%, the FTSE 100 edged down 0.35%, while Germany's DAX slumped 0.5%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose by 1.9 points to 54.0 in December from a reading of 52.1 in November.
Analysts had expected the index to decline by 0.6 points to 51.5 in December.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The final month of 2011 provided a positive end to the year for UK service providers as activity and incoming new business both rose at their strongest rates since July.
Still, a number of panelists continued to report that the economic climate remained tough, reflected by continued margin, while business confidence matched the two-and-a-half year low seen in September.
Commenting on the report, Chris Williamson, chief economist at Markit said, “The December survey rounds off a reasonable fourth quarter for the service sector, which is likely to again provide the main stimulus to overall economic growth.”
He added that, “Looking ahead, companies grew increasingly worried about the coming year, suggesting that the upturn may prove short-lived as we move into 2012.”
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.31% to trade at 1.5570.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 dropped 0.9%, France’s CAC 40 fell 0.7%, the FTSE 100 edged down 0.35%, while Germany's DAX slumped 0.5%.