Six year high for UK services sector

A new report has shown the services sector in the UK has hit a six-year high, indicating it has recovered strongly from the global financial slowdown.

According to the latest Markit/CIPS Services Purchasing Managers' Index (PMI), the sector is now growing at its fastest pace since December 2006.

The index rose to 60.2 in July from 56.9 the month before, with any reading over the 50 benchmark constituting growth.

Howard Archer, chief European and UK economist for IHS Global Insight, stated that the improved weather the UK experienced last month can help to explain the data.

"Nevertheless, there does appear to be a marked underlying improvement in activity under way, with the UK economic recovery genuinely moving to a firmer footing."

This comes shortly after the HSBC non-manufacturing Purchasing Managers' Index for China was at 51.3 for July, with the figure unchanged from June. This prompted fears the growth of the Chinese economy could be set to slow down further in the coming months.

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