Service sector activity in the U.K. expanded at the fastest pace in eight months in July, fuelling optimism over the country’s economic outlook, industry data showed on Tuesday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index rose to 59.1 last month from a reading of 57.7 in June. Analysts had expected the index to inch up to
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “The buoyancy of the services and construction sector PMIs suggest the domestic economy clearly continued to boom in July, offsetting the cooling of growth seen in the manufacturing sector.”
“We would expect to see GDP rise by 0.8% again if the surveys hold their current levels,” he added.
Following the release of that data, the pound turned higher against the U.S. dollar, with GBP/USD rising 0.13% to trade at 1.6884, compared to 1.6850 ahead of the data.