SERVICES sector activity jumped to a 17-month high in December as the economy continued to exhibit signs of resilience in the face of Brexit uncertainty.
The latest Markit/CIPS services purchasing managers' index (PMI) reached 56.2 last month, up from 55.2 in November and above economists; forecasts of 54.7.
A reading above 50 separates growth from contraction.
According to the PMI report, December’s sharp expansion rounded off the strongest quarter of the year, driven by new business.
Sentiment towards the outlook for the next 12 months also strengthened, despite ongoing Brexit uncertainty, though inflationary pressures remain, with prices rising at their strongest rate since April 2011.
The results for the services sector, which accounts for around 80 per cent of the UK economy and includes banks and high street restaurants, come after similarly positive updates on the manufacturing and construction sectors, which lifted to 30-month and ten-month highs respectively.
Chris Williamson, chief business economist at IHS Markit, said: “A buoyant service sector adds to signs the UK economy continues to defy widely-held expectations of a Brexit-driven slowdown.
“The faster growth of services activity follows similar news of improvements in the manufacturing and construction sectors at the end of 2016.”
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