British service sector growth accelerated to its highest in more than two years in June supported by the strongest gain in new businesses since 2007, a survey by Markit Economics and the Chartered Institute of Purchasing & Supply showed Wednesday.
The headline Business Activity Index recorded 56.9 in June, the highest since March 2011. In May, the index showed a reading of 54.9. Readings above 50 indicates expansion of the sector.
Growth has now been recorded for six successive survey periods. Economists had forecast a marginal fall in the index to 54.5.
New orders expanded at the fastest pace since June 2007 and this encouraged companies to add jobs at the sharpest pace since August 2007.
Confidence among service providers hit a 14-month high in June, the survey found. Both input and output prices accelerated in June. Despite the increase, output price inflation was modest and was much below that of input costs.
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