A new report has shown the services sector in the UK has hit a six-year high, indicating it has recovered strongly from the global financial slowdown.
According to the latest Markit/CIPS Services Purchasing Managers' Index (PMI), the sector is now growing at its fastest pace since December 2006.
The index rose to 60.2 in July from 56.9 the month before, with any reading over the 50 benchmark constituting growth.
Howard Archer, chief European and UK economist for IHS Global Insight, stated that the improved weather the UK experienced last month can help to explain the data.
"Nevertheless, there does appear to be a marked underlying improvement in activity under way, with the UK economic recovery genuinely moving to a firmer footing."
This comes shortly after the HSBC non-manufacturing Purchasing Managers' Index for China was at 51.3 for July, with the figure unchanged from June. This prompted fears the growth of the Chinese economy could be set to slow down further in the coming months.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.