Successful year for services heralds positive outlook

The service sector accounts for nearly 80 per cent of Britain’s economic output so the fact that it continued to grow in December will be welcome news to those closely watching for signs of economic recovery.

In fact, the sector grew every month last year and there are positive signs that the growth trajectory will continue into the new year.

This is backed up by the Markit/CIPS Purchasing Managers’ Index (PMI), which reached 58.8 last month. Although the lowest reading of the past six months, the above-50 score indicates growth and offers a positive outlook for 2014.

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