THE chances of a cut in interest rates next week weakened yesterday when data on the UK services sector came in stronger than expected.
Economists said figures showed the industry had grown at its fastest rate in three months during last month, confirming their view that the Bank of England would leave the cost of borrowing unchanged.
The Chartered Institute of Purchasing and Supply (CIPS) said a surge in new business wins helped the sector recover from September's nine-month low.
CIPS's monthly Purchasing Managers' Index report on the services sector showed business activity rose to 56.1 from 55 the previous month, with any figure above 50 representing growth.
Philip Shaw, economist at Investec Securities, said the data made a cut in interest rates a little less likely. He still expected the next cut in rates to happen early next year.
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