British service sector showing sustained growth

Britain's dominant service sector continued to grow in November with new business rising at a rapid pace, said a survey report on Wednesday. The report jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS) showed the PMI service index, also called business activity index, was at 60 in November. A reading of 50 points or greater of the index indicates expansion, while below 50 indicates contraction. "Growth was only fractionally down on October's survey record high amid reports of strengthened demand and rising client confidence," the report said. "Further buoyant growth of the services economy hands the chancellor a further piece of good news ahead of the autumn statement," said Chris Williamson, chief economist at Markit. "Although signaling an easing in the rate of growth in November, the PMI survey of the services economy continues to signal an impressively strong pace of expansion and one of the best performances for the sector we've seen since data were first collected in 1996," he added. All the PMI indices for Britain's three major economic sectors demonstrated strong increases last month, indicating a strengthening economic growth in the country. The manufacturing PMI rose to 58.4 in November from an upwardly revised reading of 56.5 in the previous month, the highest level since February 2011, and the PMI for construction increased to 62.6 in November, from 59.4 in the previous month. Williamson predicted that the economic growth would accelerate in the last quarter of this year to above 1 percent. He said: "Job creation is also surging as companies report increasingly buoyant demand. Rising employment will help sustain the upturn through improved consumer confidence and spending."