The U.K. service sector logged strong growth in June following a temporary lull in May linked to the recent election.
The headline Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index rose to 58.5 in June from a five-month low of 56.5 in May. It was forecast to rise to 57.5.
Data suggests that the second quarter of 2015 was the strongest on average since the third quarter of 2014.
New business and employment remained strong, leading to further optimism regarding prospects for future growth.
However, new order growth eased slightly, contributing to the first monthly decline in backlogs of work since March 2013. Meanwhile, input costs and output charges continued to increase in June.
“While uncertainty caused by the Greek debt crisis rules out any imminent hike in interest rates, the post-election rebound in service sector business activity adds to the likelihood of the Bank of England starting to nudge rates higher later this year,” Chris Williamson, chief economist at Markit, said.
The material has been provided by InstaForex Company – www.instaforex.com