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6 Jan 2015
UK Service sector expands at the slowest rate in 18 months
FXStreet (Mumbai) - The UK Markit/Chartered Institute of Procurement and Supply (CIPS) UK Services Purchasing Manager’s Index (PMI) for December came-in at 55.8, missing the expectation of 58.5, and down from the previous figure of 58.6.
The details reveal, despite the slowdown, growth rates remain well above historical averages, amid ongoing reports of a positive economic climate. The latest increase in activity was supported by a further rise in volumes of new business. On the employment front, the rate of employment growth was marked, despite easing to a four-month low. Meanwhile, the rate of inflation was modest as competitive pressures continued to place some restriction on pricing power. Reduced fuel prices in December served to restrict total operating cost.
As per David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, “Though the index reports a slowdown this month, the recent wave of optimism has not abated amongst the panel’s respondents, half of whom believe 2015 will still be a good year”.
The details reveal, despite the slowdown, growth rates remain well above historical averages, amid ongoing reports of a positive economic climate. The latest increase in activity was supported by a further rise in volumes of new business. On the employment front, the rate of employment growth was marked, despite easing to a four-month low. Meanwhile, the rate of inflation was modest as competitive pressures continued to place some restriction on pricing power. Reduced fuel prices in December served to restrict total operating cost.
As per David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, “Though the index reports a slowdown this month, the recent wave of optimism has not abated amongst the panel’s respondents, half of whom believe 2015 will still be a good year”.