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UK services sector grows at fastest pace for two years

04 September 2009 by
UK services sector grows at fastest pace for two years

The hospitality industry experienced a boost in August as the UK services sector grew at its fastest pace in almost two years, latest statistics have revealed.

According to the Chartered Institute of Purchasing and Supply (CIPS) and Markit Economics, the sector saw its fourth successive month of expansion, with the hospitality industry showing the most robust levels of growth.

The index of overall activity for services rose 0.9 points to 54.1 in August, where a reading above 50 represents growth and anything below indicates contraction.

New business grew for the third time in four months, although the pace of growth slowed slightly to 52.6 from 52.7. However, the rise in activity in the sector was in part supported by price discounting.

CIPS chief executive officer David Noble said the UK services sector had seen a strong turnaround in recent months.

"The sector has bounced back from its low earlier in the year and in August grew at its fastest pace in almost two years. This is particularly good news as the survey covers almost 40% of the UK economy," he said.

Lack of financing may dampen restaurateurs' confidence >>

Boris Johnson outlines plan to boost economy during 2012 Olympics >>

Restaurateurs less gloomy about the future, finds report >>

By Kerstin Kühn

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