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UK service sector grows massively

6th Dec 16 10:13 am

Hope on the horizon for the UK economy

The UK service sector has seen its biggest growth since the beginning of the year, it grew by more than expected in November.

The service industry grew to 55.2, up from 54.5 in October, according to the Markit/CIPS purchasing managers’ index (PMI).

Any score above 50 indicates a growth in the sector whilst anything below 50 would mean contraction of the industry.

The new 55.2 reading shows the fastest growth since January. This also follows better than expected results from the construction industry last week.

PMI closely watches the service industry as it accounts for almost 80 per cent of the UK’s overall economy.

According to figures from the Confederation of British Industry (CBI), the sector has seen a sharp decline in profits over the last three months.

Poor sales hit the sectors with 41 per cent of businesses saying profitability was down.

However, todays PMI reading marked the fourth consecutive month of growth for the sector.

Chris Williamson, chief business economist at IHS Markit, which compiles the survey, told Sky News: “The further upturn in the vast services sector shows that the pace of UK economic growth remains resiliently robust in the fourth quarter, despite ongoing uncertainty caused by Brexit,”

“The three PMI surveys collectively indicate that the economy will grow by 0.5% in the fourth

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