“The UK service sector expanded at its quickest pace for over six-and-a-half years in July as new business continued to rise strongly amid evidence of an improvement in market conditions,”
said the analysts at Markit.
“The strong gain in new work placed pressure on capacity, leading to a marked increase in backlogs of work and encouraged solid payroll growth.”
According to Markit, the UK’s business activity index jumped to 60.2 in July from 56.9 in June. This is the highest reading since December 2006.
Here are the key points from Markit’s report:
- Faster increase in new sales volumes as market conditions continue to strengthen
- Backlogs rise at sharpest rate since February 2000
- Business confidence strengthens to highest level for 15 months
“The services sector stormed to a six year high in July, registering levels of performance not seen since before the financial crisis,” said David Noble, CEO of the Chartered Institute of Purchasing and Supply. “Combined with the manufacturing and construction figures, this is the clearest sign yet that the UK economy is experiencing a broad based economic recovery and has the momentum to deliver continued growth.”