Service sector growth slowed in July
Growth in the service sector remains strong, but slowed slightly in July, a survey from Markit/CIPS suggests report Harris & Co chartered accountants Northampton, the specialist small business accountants for the service sector. Its PMI for the sector fell to 57.4 in July from 58.5 in June. Figures above 50 indicate growth in the sector. Of firms responding, 18% expanded their workforces compared with 9% saying that they cut staff. The job creation rate was the slowest since March 2014. Markit said its surveys suggested the UK economy grew by 0.6% in the three months to July. The most recent official GDP figures suggested growth of 0.7% for the three months to the end of June. "Despite the dip in the PMI in July, the service sector continues to act as the main driver of economic growth," said Markit chief economist Chris Williamson. But he added that the figures had been boosted by the financial services sector which had seen its fastest growth since 2013. All other sectors reported slower rates of expansion. "A deterioration in service sector growth is the latest in a stream of signals that the economy has slowed as we move into the second half of the year."