Service Sector Growth Accelerates but Doubts Remain

The HeraldApril 06, 2011

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Summary


GROWTH in the UK's dominant services sector accelerated sharply to its fastest pace for more than a year in March - rebounding from a weak rate in February - a key survey has shown.

Financial information company Markit, which compiled the survey for the Chartered Institute of Purchasing and Supply, said the readings of its services, manufacturing, and construction surveys for the period from January to March suggested first-quarter UK growth of 0.5% based on historical comparisons. And Chris Williamson, chief economist at Markit, believed that official data "could easily point to a far stronger rate of growth of perhaps 0.8%" given that the fall in UK economic output in the fourth quarter of last year had been steeper than CIPS' surveys had suggested.

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Service Sector Growth Accelerates but Doubts Remain

UK gross domestic product fell by 0.5% in the fourth quarter of 2010, so a 0.5% rebound would take economic outp...

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