Service, manufacturing sectors lift UK recovery hopes
06 Aug 2009
Britain's services sector registered its fastest pace of growth in about 18 months in July, beating market expectations, shows data released by the UK Chartered Institute for Purchasing and Supply (CIPS) yesterday.
The CIPS said its monthly purchasing managers index (PMI) for the services sector grew to 53.2 in July from 51.6 in June, the third consecutive month it has been above the 50 mark.
''The services sector is rebounding at an unprecedented rate after what has arguably been the most savage economic downturn since the end of the Second World War,'' David Noble, chief executive officer at CIPS, said in the statement.
''The scars inflicted on the sector by the troubled economy will take time to fade. Companies are still cautious about committing to substantial spending,'' he added.
A reading above 50 indicates the expansion of the service sector while the reading under 50 indicates that the sector is shrinking.
The reading was the highest since February 2008 and was largely fueled by an increase in new business.