UK services activity rises more than expected

UK services activity grew more than expected in January, according to data released on Wednesday.

The Markit/CIPS services purchasing managers' index rose to 57.2 last month from 55.8 in December, compared to analysts' estimates of 56.3. A reading above 50 signals expansion.

Growth was attributed to the expansion to the start-up of new projects, higher marketing activity and rising levels of new business.

"The data will allay fears that the economy is slowing sharply, having merely seen growth cool during the winter to a more sustainable pace," said Chris Williamson, chief economist at Markit.

“Even more encouraging is the upturn in employment. With the sole exception of the jump in hiring seen last June, the three surveys collectively signalled the strongest job creation since data were first available back in 1998."