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4 Mar 2015
UK service sector expands at a slower rate in February
FXStreet (Mumbai) - The headline seasonally adjusted Markit/CIPS UK Services Activity Index rose to 56.7 in February, missing the consensus estimate of 57.5, and down from January’s 57.2. Though, the pace has slowed, still growth has now been registered for 26 months in a row.
The details reveal the new business increased at sharpest pace for three months. Service providers responded to the sharp rise in new business by adding to their payroll numbers at the second sharpest rate in the survey history. Business expectations improved marginally in February to a three-month high.
The input price inflation rose due to higher wages. Average output charges also increased in February. Prices have now increased for three months in a row, although the rate of increase in prices remained modest as competitive pressures placed some restriction on pricing power.
As per Chris Williamson, Chief Economist at Markit, “Although the rate of expansion slowed in the vast services economy, growth has picked up in both manufacturing and construction. The three PMI surveys collectively indicated a slight acceleration in economic growth for a second successive month in February as a result, consistent with GDP growth picking up to 0.6% in the first quarter.”
The details reveal the new business increased at sharpest pace for three months. Service providers responded to the sharp rise in new business by adding to their payroll numbers at the second sharpest rate in the survey history. Business expectations improved marginally in February to a three-month high.
The input price inflation rose due to higher wages. Average output charges also increased in February. Prices have now increased for three months in a row, although the rate of increase in prices remained modest as competitive pressures placed some restriction on pricing power.
As per Chris Williamson, Chief Economist at Markit, “Although the rate of expansion slowed in the vast services economy, growth has picked up in both manufacturing and construction. The three PMI surveys collectively indicated a slight acceleration in economic growth for a second successive month in February as a result, consistent with GDP growth picking up to 0.6% in the first quarter.”