Britain’s service sector is gearing up for a strong second half to the year following a surge in new orders last month, according to figures from financial data provider Markit.
Activity across the sector slowed slightly from May to June, but firms remained buoyant about their prospects through the summer and autumn, matching their enthusiasm with a strong increase in marketing costs and jobs.
Coming after figures showing both manufacturing and construction gaining in strength, service sector growth indicated that GDP growth will remain at an annual rate of 3% until 2015.
Jonathan Loynes, the chief European economist at consultancy Capital Economics, said that while June marked the second month of falls in the Markit CIPS index, the available data points to a quickening in the economic recovery in the second quarter.
“Accordingly, we think that GDP could rise by a quarterly 1% or so in the second quarter,” he said.
The main business activity index fell from 58.6 in May to 57.7 in June where a figure above 50 indicates growth.
The services sector accounts for 77% of the economy and has proved to be the bedrock of economic expansion following consistent growth since 2012. In 2013, it became the first sector to regain all the ground lost in the recession.
via The Guardian