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UK Index shows activity increase

Friday August 12th, 2011

The latest Markit/CIPS Purchasing Managers’ Index has shown that UK services activity increased to 55.4 in July, up from 53.9 in June, with business activity and IT driving the growth.

Higher enquiry levels and stronger market conditions are also thought to have contributed to the healthy growth in the sector, which represents 76% of the UK economy.

Input cost inflation remained at an elevated level due to supply chain pressures, increased food costs and higher energy and utility bills. 

Paul Smith, senior ecnonomist at Markit, said: “Given the headwinds of austerity at home and the ongoing public debt issues in major export markets, the scenario of a continued choppy recovery would be the best forecast for the sector’s performance in the coming months.”

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