UK Service Sector Shrinks In December

(RTTNews) - The UK service sector contracted unexpectedly in December, Markit Economics said Thursday. Poor weather and snow impacted heavily on the service sector at the end of 2010.

The seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index for the service sector fell more than expected to 49.7 from 53 in November. Posting below the 50.0 no-change mark for the first time since April 2009, the index therefore pointed to a marginal decline of service sector output. The expected reading for December was 52.8.
"With manufacturing the only sector still expanding, the economy as a whole stagnated in December, taking GDP growth in the final quarter down to around 0.4% - a far cry from the 1.1% growth spurt seen in the spring," said Chris Williamson, chief economist at survey compilers Markit.