Britain's services sector growing fast

[August 05, 2009]  LONDON (AP) -- Britain's services sector grew at its fastest rate in nearly a year and a half during July, a closely watched survey showed Wednesday.

The Chartered Institute for Purchasing and Supply said its monthly purchasing managers index for the services sector rose to 53.2 in July from 51.6 in June. The rise was bigger than anticipated in the markets and reinforces hopes that the British economy may in fact be growing again after its deepest recession since the Second World War.

A reading above 50 indicates expansion and the greater the difference from 50 the greater the expansion.

July's reading was the highest since February 2008 and was largely fueled by an increase in new business.

The services sector is key to whether the British economy can start growing again as it accounts for around two-thirds of total economic activity.

[Associated Press]

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