23/Apr/2014 - Last News Update: 15:02

Service sector output 'unexpectedly slows in July'

Category: Business

Published: 3rd Aug 2012 11:16:52

The rate of output in the UK's service sector unexpectedly slowed in July, according to a survey.

The PMI services index from Markit/CIPS fell to 51 in July, from 51.3 in June. Any number above 50 indicates growth.

July's reading came as a surprise, as the index was forecast to rise to 51.5.

The report follows after sister Markit/CIPS surveys earlier this week showed a slight growth in construction output, but further fall in the manufacturing sector.

Commerzbank economist Peter Dixon said: "They [the figures] are weaker than what we would like to have seen... it's indicative of the fact that the economy is very definitely losing momentum.

"We're still above 50, that's a positive, but it's not really boding terribly well at this stage for the start of Q3, given what we've already seen from the manufacturing side."

The giant UK services sector includes everything from banks to hotels and restaurants.

The UK is in recession after the economy contracted by 0.7% between April and June, following a 0.3% drop in the first three months of the year.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Service sector output 'unexpectedly slows in July' [Online] (Updated 3rd Aug 2012)
Available at: http://www.ukwirednews.com/news/1444319/Service-sector-output-unexpectedly-slows-in-July [Accessed 23rd Apr 2014]

News In Other Categories

  • Palestinian Hamas-Fatah unity deal announced

    Rival Palestinian factions Fatah and Hamas have announced a reconciliation deal after a meeting in the Gaza Strip.
  • Football Association hit by drop in broadcast money

    The Football Association was hit by a £34m drop in broadcasting rights income last season compared with 2011-12.
  • Max Clifford jury gets majority direction

    Jurors in the indecent assault trial of publicist Max Clifford have been told they can return a majority verdict.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Plan to abolish corroboration put on hold by Scottish government

    Controversial plans to end the need for evidence in Scottish criminal trials to come from two sources have been delayed by the government.
  • Plan to abolish corroboration put on hold by Scottish government

    Controversial plans to end the need for evidence in Scottish criminal trials to come from two sources have been delayed by the government.