Growth in Britain’s service industries slowed last month, but firms became more confident, stepping up hiring and raising wages after an increase in new business.
The services purchasing managers’ index (PMI) from Markit/CIPS slipped more than economists expected, to 56.7, from 57.2 in January.
Vicky Redwood, chief UK economist at Capital Economics, described the fall as “a bit of a disappointment, but hardly a disaster”.
Rob Wood, chief UK economist at Berenberg bank, said: “Despite a small dip, the UK services PMI points to strong growth.”
In the eurozone, Markit’s composite PMI, which measures services and manufacturing activity, suggests the bloc’s economy is on course to growth by 0.3% in the first quarter, the fastest rate in seven months. Bailed-out countries Spain and Ireland continue to enjoy the fastest expansion.
