–UK Dec CIPS Services PMI 49.7 Vs 53.0 In Nov – Markit/Reuters

LONDON (MNI) – The service sector contracted in December, with the
all sector output PMI falling sharply from November but with growth
still in positive territory.

The Purchasing Managers Index from Markit for the Chartered
Institute of Purchasing and Supply showed the weakest services outturn
for 20 months. The December CIPS services index, released by Reuters,
came in at 49.7, down from 53.0. Markit said activity had been hit by
the exceptionally poor weather but also noted new business was weak.

The services data follow weaks CIPS construction and manufacturing
data for December.

The PMI all sector Output Index fell from 54.0 in November to 51.4
in December, the largest monthly points fall since November 2008.

Markit said the data point to GDP growth of around 0.4% in Q4, down
from 0.7% in Q3 and suggest a slowing in GDP growth to near-stagnation
in December.

–London newsroom 0044 207 862 7491; email:drobinson@marketnews.com