Service sector in UK grew slower than expected
According to a survey, growth in service sector in UK suffered a major setback. The Markit/CIPS Purchasing Managers' Index (PMI) revealed that the growth in this sector in the country was slower-than-expected. Growth in UK was noted to be 52.6 in month of February, while economy experts were targeting a faster growth from January month onwards.
In month of January, the service sector growth rate in UK was 54.6. Figures above in PMI indicate expansion. So at least it was a good outcome of the report for the analysts.
Technical analyst Alan Clarke at BNP Paribas informed BBC, "This is potentially crucial. The Bank of England has flagged that it is waiting to see if the weakness in underlying growth in Q4 was temporary or not". According to another analyst, PMI doesn't deserve much concern as they fluctuate frequently. Survey also showed sector looses more jobs in Feb, than new employments.
Service sector plays significant role in the economy of UK with three quarters contribution to total output from UK. It saw a snowfall in December. But after recovery in January, it again showed a negative trend. However, a decline was expected, but PMI dropped more than expected. It was expected to be 53.9 in February. After the data, Pound also fell against dollar to $1.6261.