UK service sector sees sharp growth in January

FXStreet (Mumbai) - The UK Markit/CIPS services Purchasing Manager’s Index (PMI) in January rose to 57.2, beating the expected print of 56.3, and up from the prior reading of 55.8. This is a 25th consecutive month of expansion in service activity.

The details revealed the new business increased at marked and accelerated pace in January , while a 30% of the survey panel recorded a rise in new work. Input price inflation eased to the lowest since June 2009 during January, while output price inflation weakened to a marginal pace due to competitive pressures.

As per David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, “The dominant sector in the UK continues to lead the way with strong growth and robust activity at the start of the year, now for 25 months in succession, and at a level which shows confidence for the coming months. With a sharp drop in oil prices still having an effect on overall input prices, this looks to be a very happy new year for the services sector and a boost for the UK economy.”