British service sector growth improves in April

  British service sector presented improved performance in April thanks to better weather and increased foreign demand and improved market conditions, a survey report on Friday. According to the report jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS), the Markit/CIPS service Purchasing Managers' Index (PMI) rose to 52.9 in April from 51.0 in the previous month, the fastest pace of growth for eight months. A PMI reading of 50 or greater indicates expansion, while below 50 indicates contraction. "A broad-based improvement is becoming evident in the UK economy, greatly reducing the likelihood of the Bank of England seeing any need to increase its asset purchases in the immediate future," said Chris Williamson, chief economist at Markit. "The data suggest that the return to growth enjoyed by the economy in the first quarter persisted and may have gained momentum at the start of the second," Williamson noted. He held the PMI data would kill off the likelihood of the central bank's monetary policy committee voting for more asset purchases at its meeting in May. The Markit/CIPS PMI report attributed the steady improvement in service sector to strong rise in new work since last May and increase of sales volume. The survey found that over 46 percent of service providers are forecasting a rise in business activity from present levels in 12 months' time. Service, which accounts for more than 70 percent of the economy, is regarded as a saver to help Britain avoid a triple-dip recession in the first quarter of this year. Official data show the British economy grew 0.3 percent in the first quarter as compared with the previous thee months and 0.6 percent when compared with the first quarter of 2012, the strongest year on year growth since the end of 2011. The growth was mainly driven by the service sector though construction remained in the doldrums. However, the upturn is being led by the service sector, but it has been accompanied by signs of activity stabilizing in manufacturing and construction in the month, said the Markit/CIPS PMI report. Britain's manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in April after two months of decline.