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U.K. service sector growth eases slightly but still strong

  • U.K. services PMI slipped to its lowest level in eight months in January, falling to 58.3 from 58.8 in December and missing consensus for a rise to 59.
  • However, business confidence is at the highest level since March 2010, backlogs rose to the greatest degree since May 1997 and put pressure on capacity, and employment growth accelerated again.
  • The trends should ensure that the expansion remains strong in February.
  • Inflationary pressures and wage growth remain muted, Markit says, adding that this provides the BOE with continued room "to keep policy loose for longer while the economy continues its recovery."
  • January's PMI data indicates that GDP will grow 0.8% in Q1.
  • The pound is -0.3% at $1.6282, while the FTSE 100 is +0.4%.  (PR)
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