Investing.com – Service sector activity in the U.K. rose unexpectedly in September, rebounding from an eight-month low, data showed on Wednesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 52.9 in September from 51.1 in August.
Analysts had expected the index to decline to 50.5 in September.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data indicated an improvement in business activity growth following the steep deceleration registered in August. Higher activity was supported by an improved trend in new business, amid some reports of stronger demand.
However, rates of growth remained below trend and, with backlogs down modestly, companies on the whole remained reluctant to take on new staff.
Business confidence also continued to soften in September, hitting a 30-month low.
Commenting on the report, Chris Williamson, chief economist at Markit said, ““A surprise uplift in growth is welcome news, coming on the back of a similar upturn in manufacturing, but masks the fact that all is not well in the UK services economy.”
He added that, “Business confidence about the year ahead slipped to its lowest since March 2009 and is running at a level only ever seen before in periods of crisis.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD dipping 0.1% to trade at 1.5471.
Meanwhile, European stock markets were up sharply. The EURO STOXX 50 rallied 2.15%, France’s CAC 40 rose 2.45%, the FTSE 100 gained 1.85%, while Germany's DAX jumped 1.9%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 52.9 in September from 51.1 in August.
Analysts had expected the index to decline to 50.5 in September.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
The data indicated an improvement in business activity growth following the steep deceleration registered in August. Higher activity was supported by an improved trend in new business, amid some reports of stronger demand.
However, rates of growth remained below trend and, with backlogs down modestly, companies on the whole remained reluctant to take on new staff.
Business confidence also continued to soften in September, hitting a 30-month low.
Commenting on the report, Chris Williamson, chief economist at Markit said, ““A surprise uplift in growth is welcome news, coming on the back of a similar upturn in manufacturing, but masks the fact that all is not well in the UK services economy.”
He added that, “Business confidence about the year ahead slipped to its lowest since March 2009 and is running at a level only ever seen before in periods of crisis.”
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD dipping 0.1% to trade at 1.5471.
Meanwhile, European stock markets were up sharply. The EURO STOXX 50 rallied 2.15%, France’s CAC 40 rose 2.45%, the FTSE 100 gained 1.85%, while Germany's DAX jumped 1.9%.