Service Sector Growth
Published / Last Updated on 04/08/2014
Service Sector Growth.
The Markit/CIPS services purchasing managers index (PMI) in its survey of the market found that the services sector grew strongly in July to reach an eight month high. The survey sector grew to 59.1 in the month, up from the 57.7 in June. Anything over 50 is growth.
More than 70% of the UK economy is accounted by the services sector, this has been the main area that helped the UK economy recover.
The sector has given further indication of strong growth for the UK economy over the third quarter, with UK GDP expected to rise 0.8% if this growth continues. This is expected to lead to more calls to raise interest rates this year.
The Chief Economist at Markit Chris Williamson commented on this growth saying that “Alongside an ongoing surge in construction and the largest quarterly rise in manufacturing output for 20 years, the services PMI confirms that the economy is firing on all cylinders”.