Investing.com – Service sector activity in the U.K. expanded at a slower rate than expected in February, improving at the weakest pace since November, industry data showed on Monday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index declined by 2.2 points to 53.8 in February from a reading of 56.0 in January.
Analysts had expected the index to decline by 1.0 point to 55.0 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
U.K. service sector growth was sustained in February, albeit at the slowest rate for three months as a weaker increase in new business was recorded.
Moreover, sales were in part supported by discounting, with output charges down modestly despite a continued rise in input prices.
Commenting on the report, Chris Williamson, chief economist at Markit said, “Despite seeing some loss of momentum in February, the service sector continued to grow at a robust pace, adding to signs that a double-dip recession will be avoided.”
“Combined with the ongoing modest growth in manufacturing and upturn in the construction sector, the latest services PMI data suggest that the economy will expand modestly in the first quarter,“ he added.
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.2% to trade at 1.5803.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 retreated 1.1%, France's CAC 40 dropped 0.85%, London’s FTSE 100 fell 0.55%, while Germany's DAX tumbled 1.3%.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index declined by 2.2 points to 53.8 in February from a reading of 56.0 in January.
Analysts had expected the index to decline by 1.0 point to 55.0 in February.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
U.K. service sector growth was sustained in February, albeit at the slowest rate for three months as a weaker increase in new business was recorded.
Moreover, sales were in part supported by discounting, with output charges down modestly despite a continued rise in input prices.
Commenting on the report, Chris Williamson, chief economist at Markit said, “Despite seeing some loss of momentum in February, the service sector continued to grow at a robust pace, adding to signs that a double-dip recession will be avoided.”
“Combined with the ongoing modest growth in manufacturing and upturn in the construction sector, the latest services PMI data suggest that the economy will expand modestly in the first quarter,“ he added.
Following the release of that data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.2% to trade at 1.5803.
Meanwhile, European stock markets were broadly lower. The EURO STOXX 50 retreated 1.1%, France's CAC 40 dropped 0.85%, London’s FTSE 100 fell 0.55%, while Germany's DAX tumbled 1.3%.