Investing.com - Growth in the UK service sector picked up in December, but the underlying trend raised doubts over the continued resilience of the economy, according to data released on Thursday
Research group IHS Markit reported that its purchasing managers’ index rose to 54.2 in December from 53.8 in November, compared to forecast for a reading of 54.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Firms reported that new order growth eased to 16-month low amid concerns over Brexit, while the rate of job creation slipped to a nine-month low. Input costs rose at the fastest rate in three months, the report said.
"However, as has been increasingly the case in recent months, the good news comes with a health warning about the sustainability of the upturn," said Chris Williamson,chief economist at survey compiler IHS Markit.
"Digging into the details behind the resilient strength signaled by the headline numbers, the survey data reveal an economy that is beset with uncertainty about the outlook, which is in turn dampening business spending and investment," he added.
The report came after similar surveys earlier in the week showed that growth in the UK manufacturing sector cooled last month from four-year highs struck in November, but remained solid.
Meanwhile, growth in the construction sector slowed last month for the first time since September.
Taking the three sector surveys together, Britain's economy probably expanded at a quarterly rate of around 0.4% to 0.5% in the fourth quarter of 2017, survey compiler IHS Markit said.