Surprise growth in service sector
Thursday 05 January 2012
Stronger-than-expected growth in the powerhouse services sector last month is likely to have saved the economy from contraction in the final quarter of 2011, a survey claimed today.
The Markit/CIPS Purchasing Managers' Index (PMI), where a reading above 50 indicates growth, showed services rose to 54 in December, up from 52.1 the previous month. The City had expected the reading to fall to 51.5.
It comes on top of better-than-expected performances for the manufacturing and construction sectors in December.
The reading across all three sectors rose to 53.2 in December from 51.2 in November in the strongest expansion since July.
But with business confidence in the services sector at a joint two-and-a-half-year low, there is still doubt as to whether the UK can avoid slipping into a recession in coming months.
Markit chief economist Chris Williamson predicts the economy will show no growth in the final quarter of 2011 despite the improved performance in December.
He said: "Services are likely to have expanded by around 0.3% to 0.4% in the final quarter, down from 0.7% in the third quarter but offsetting a renewed downturn in manufacturing and sluggish growth of construction to help the UK avoid a slide back into recession, at least for now."
- 1 What happens to your body when you give up sugar?
- 2 Ed Miliband deemed less influential than One Direction's Louis Tomlinson by official Doncaster power list
- 3 Japanese island overrun with cats after population explodes
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Ed Miliband deemed less influential than One Direction's Louis Tomlinson by official Doncaster power list
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...