Send us your pictures, video, news and views by texting NORTHERN ECHO to 80360 or email us
Services sector continues growth
1:22pm Thursday 3rd July 2014 in Business
THE UK services sector is creating jobs at a record pace as the UK economy continues its growth, a report has revealed.
A survey says the industry, which includes banks and restaurants, has hit a six-month peak, fuelling hopes GDP will reach an all-time high.
The Markit/CIPS services purchasing managers' index (PMI) revealed a reading of 57.7 for June.
The mark was down from May's 58.6.
However, it remains well above 50, the figure used to indicate growth.
The results came after data this week showed the UK's construction and manufacturing industries were also strengthening.
However, Chris Williamson, Markit chief economist, warned the results could mean a rise in interest rates.
He said: "Yet another strong services sector results indicates the UK economy continued to boom in June.
"Alongside an ongoing surge in construction and the largest quarterly rise in manufacturing output for 20 years, the services PMI confirms the economy is firing on all cylinders.
"We expect the economy to grow by 0.8 per cent again in the second quarter, taking GDP to a new all-time high.
“However, the persistent strength of the PMI surveys raises the likelihood of policy-makers deciding a pre-emptive rise in interest rates later this year is warranted, especially given the speed the labour market is improving."
Comments are closed on this article.