Markit's service sector survey eases concerns over economic growth

Chris Papadopoullos
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The service sector covers a wide range of industries and makes up around 80 per cent of UK economic output (Source: Getty)

The UK's service sector grew at a faster rate in November, easing concerns that the economy was slowing after weak figures for construction and manufacturing.

Markit's service sector purchasing managers' index – a survey of firms – scored 55.9 for November from 54.9 in October. It is a four-month high and is further above the 50 "no change" mark.

"A welcome upturn in service sector expansion helped counter slower growth in manufacturing and construction in November, suggesting the UK continues to enjoy the ‘Goldilocks’ scenario of solid economic growth and low inflation," said Markit chief economist Chris Williamson.

"The rate of job creation remained resiliently robust in November despite widespread difficulties finding suitable staff and worries about the introduction of the National Living Wage, in turn leading to reports of rising wages."

Williamson believes the combination of the services, manufacturing and construction PMIs points to economic growth of 0.6 per cent in the final three months of the year. This would mark a slight uptick from the 0.5 per cent growth between July and September.

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