Economic news

British service sector rises in July

UK economy seems to be going to grow slowly but steadily in the next months, as one of the business reports delivered data on slight rise in services sector last month. The numbers go with the signals prompting British economy is trying to gain traction, while this year’s start has been the worst since 2012.

Figures might play an important role in keeping interest rates at previous levels, as the Bank of England needs to come up with the decision.

The IHS Markit/CIPS services Purchasing Managers' Index got up to 53.8 last month compared to June's 53.4, which had been the lowest in 4 months, that is higher than the think tank had anticipated, though lower than long-run average.

The services PMI comes after more optimistic figures of the manufacturing sector on Tuesday, and feeble construction figures on Wednesday.

IHS Markit’s chief economist said that all this data combined gives clues to slow but steady growth of the economy at the quarterly rate of 0.3%, which equals to that of the three months to June. The longer prospects are not promising either, service sector companies are more upbeat for the rest of the year than they were in June, though expectations are near the lowest since late 2012.

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