UK service sector sees welcome acceleration in growth

The UK’s service sector saw increased activity in November, following on from a disappointing October, a survey has revealed.

The Markit/Cips services purchasing managers’ (PMI) index increased to 52.1, from a figure of 51.3 in October. A score above 50 indicates growth.

As the service sector accounts for approximately two-thirds of UK economic activity, it is an important sector and a good indicator of the general health of the UK’s economy.

The increase in the UK’s November figure was due to higher volumes of new work together with a rise in marketing. "The service sector saw a modest expansion again in November, holding up in the face of growing gloom at the health of the domestic economy and heightened uncertainty regarding the euro area's debt crisis," said Chris Williamson, Markit's chief economist. These figures were in comparison to the figures post in the eurozone, which showed the region’s service sector shrinking for the third month in a row (47), albeit improving its performance on October (46.5).