UK Service Sector Growth Accelerates in January

The UK’s service sector expanded faster than expected in January after a relatively slow pace of growth in December, a survey has suggested.

The purchasing managers’ index from Markit/CIPS rose to 57.2 in January compared with December’s reading of 55.8, which was a 17-month low.

A figure above 50 indicates expansion.

Markit chief economist Chris Williamson said the survey indicates “a reassuringly robust start to the year for the UK economy”.

“The data will allay fears that the economy is slowing sharply, having merely seen growth cool during the winter to a more sustainable pace.”

The services sector saw an “impressive rate” of jobs creation, at around 70,000 per month, Mr Williamson said.

Prices paid by services companies for goods and energy rose at the slowest pace since June 2009, Markit said.

Sharp falls in the price of fuel – driven down by oil prices more than halving over the past six months – led to cuts in operating costs at many companies, it added.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza