British service sector PMI soars to 27-month high in June


   The purchasing manager's index (PMI) of British services sector rose to 56.9 in June from 54.9 a month earlier, said Markit Economics and the Chartered Institute of Purchasing & Supply on Wednesday.

  The reading is the highest since March 2011.
  The sharp increase in new business led to a marked rise in backlogs of work, and encouraged companies to take on additional staff to the strongest degree since August 2007, said Markit. The business confidence in the service industry hit a 14-month high.
  Chris Williamson, chief economist at survey compilers Markit, said, “Surging growth in the service sector accompanied a resurgent manufacturing sector and modest growth in construction in June for an increasingly broad-based economic upturn.”
  “The buoyant picture for June means the economy is on course to expand by at least 0.5 percent in the second quarter, with more growth to come,” said Williamson.
  According to Markit's reports released earlier this week, the British manufacturing and construction PMI rose to 52.5 and 51 in June respectively, indicating activities expansion and adding momentum to the country's economic growth.
  But David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, added, “A handful of issues remain. The macroeconomic environment remains uncertain and competition remains fierce. At the same time, whilst output prices rose, firms are still struggling to pass on the full extent of input price rises to clients.”