The UK service sector grew at the slowest pace in July since December 2010, according to the Markit/CIPS services purchasing managers index (PMI).
The Markit/CIPS July service sector PMI slipped from 51.3 points in June to 51 in July. A group of analysts had projected a rise to 51.5 points. It may be noted here that anything above 50 indicates expansion, while anything below that mark indicates contraction in the economy.
Economists blamed the combination of poor weather in the first half of July, some disruptions in the lead up to the London Olympics, and ongoing tough economic conditions for the poor growth of the service sector.
But CIPS chief executive David Noble said, “While we can point to poor weather in early July and disruption caused by the Olympics for the subdued performance, these temporary factors don’t tell the full story.”
According to Mr. Noble, the extra bank holidays to celebrate the Queen’s Diamond Jubilee held back the UK’s dominant sector.
The all-sector index slipped for a fourth month in a row, from 51.1 in June to 49.5 in July. It was the first monthly drop in output since April 2009.
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