Investing.com – The service sector in the U.K. grew unexpectedly in October, data showed on Wednesday.
In a report, the market research group, Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 53.2 in October, up from 52.8 in September.
Analysts had expected the index to fall to 52.6 in October.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Commenting on the report, Paul Smith, senior economist at Markit said, “October’s survey suggests a modest improvement in service sector growth, supported by a slightly stronger expansion from new business.”
He added, “However, on both output and new orders measures, rates of expansion remain soft compared to long-run averages, as companies continue to digest the true effects on the economy of the coalition government’s Comprehensive Spending Review.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.37% to hit 1.6095.
Meanwhile, European stock markets were up. The FTSE 100 gained 0.05%, the EURO STOXX 50 rose 0.12%, France’s CAC 40 added 0.23%, and Germany's DAX was up 0.16%.
In a report, the market research group, Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 53.2 in October, up from 52.8 in September.
Analysts had expected the index to fall to 52.6 in October.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Commenting on the report, Paul Smith, senior economist at Markit said, “October’s survey suggests a modest improvement in service sector growth, supported by a slightly stronger expansion from new business.”
He added, “However, on both output and new orders measures, rates of expansion remain soft compared to long-run averages, as companies continue to digest the true effects on the economy of the coalition government’s Comprehensive Spending Review.”
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.37% to hit 1.6095.
Meanwhile, European stock markets were up. The FTSE 100 gained 0.05%, the EURO STOXX 50 rose 0.12%, France’s CAC 40 added 0.23%, and Germany's DAX was up 0.16%.