UK Service Sector Accelerates In Dec; New Orders Fall - CIPS>

     LONDON (MNI) - Expansion in the UK service sector accelerated in 

December but the near-term outlook deteriorated with new order growth 

falling to a 16-month low.

     The IHS/Markit December services PMI rose to 54.2 from 53.8 in 

November, the second highest reading since April 2017. New business 

volumes, however, fell to the lowest level since August 2016.

     Survey respondents reported soft business investment and cost 

consciousness among clients pushing down on sales growth.

     Input price inflation continued to rise, hitting its highest levels 

since September 2017. A mix of rising fuel prices, feeding through 

to higher utility bills, and higher fuel and staff costs were cited as 

the factors behind the rise.

      The rise in the service sector PMI, completing the fourth quarter 

CIPS data set, suggest that the pace of growth in the UK economy in the 

fourth quarter was 

broadly similar to the 0.4% quarterly growth seen in the third.

     "The survey data are consistent with the economy having grown 0.4% 

to 0.5% in the fourth quarter," Chris Williamson, chief business 

economist at IHS Markit, said.

     Williamson went on to question the sustainability of the December 

result with uncertainty "dampening business spending and investment".    

 -London newsroom: e-mail: david.robinson@marketnews.com     

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