U.K. Jan. Services PMI Falls More Than Expected

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The CIPS/Markit Purchasing Managers' Index for the British service sector fell to 54.5 in January from 56.8 in December, a report released by Markit Economics showed Wednesday. The expected reading was 56.5. The indicator stayed above the neutral level of 50 for the ninth straight month. But the service sector activity in January rose at the slowest pace in five months.

The slowdown of activity expansion was mainly attributed to the disruptions caused by poor weather in January, which also led to a significant decrease in growth of new business. The increase in VAT in January underpinned the strongest rise in input costs since October 2008.

"The chaos caused by the snow hit this sector particularly hard, much more than manufacturing or construction, reducing the growth rates of activity and new business wins," David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply said.

The CIPS/Markit Purchasing Managers' Index for the British service sector fell to 54.5 in January from 56.8 in December, a report released by Markit Economics showed Wednesday. (Market News Provided by RTTNews)