Forexpros – Service sector activity in the U.K. improved unexpectedly in November, albeit at a modest pace industry data showed on Monday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose by 0.8 points to 52.1 in November from 51.3 in October.
Analysts had expected the index to decline by 0.8 points to 50.5 in November.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
U.K. service sector growth was maintained for the eleventh successive month in November, but at a modest pace as incoming new business increased at the slowest rate of the year so far.
Higher activity reflected a combination of rising volumes of incoming new work and increased marketing/advertising. However, there was evidence from the survey panel that the business climate remained tough, with the European debt crisis undermining confidence.
Commenting on the report, Chris Williamson, chief economist at Markit said, “With manufacturing contracting at a steep pace, the weak growth of services means the U.K. economy is likely to have stagnated in the fourth quarter.’
He added that, “Strong headwinds from the continued euro zone crisis combined with public sector pressures are adding to the anxiety levels amongst many businesses in the sector.”
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD rising 0.24% to trade at 1.5635.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 jumped 1.05%, France’s CAC 40 rose 0.95%, the FTSE 100 added 0.35%, while Germany’s DAX advanced 0.65%.
Forexpros
