UK services PMI at lowest level since May 2013

The UK service sector grew at its weakest pace in over two years, data released on Thursday showed.

The UK Markit service Purchasing Managers’ Index (PMI) declined from 57.4 in July to 55.6 in August, its lowest level since May 2013 and short of the 57.7 reading analysts had expected.

Meanwhile, the sub-index monitoring new business received by UK service providers rose for the thirty-second successive month in August.

The rate of expansion remained strong in the context of the survey history, but slowed since July to the weakest since April 2013, Markit said.

“August saw an unexpectedly sharp slowing in the pace of economic growth,” said Chris Williamson, chief economist at Markit.

“A marked waning of prices pressures other than wages during the month suggests the inflation outlook is benign and is therefore likely to help tip the argument towards postponing any rate hikes until the wider global economic picture becomes clearer.”