socialmedian: Services show biggest rise since 2007

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Services show biggest rise since 2007

Source: The Guardian

Nov 04, 2009

Summary

But critics argue that the Cips report has not been running long enough to accurately show economic turning points

Britain's dominant services sector enjoyed its strongest performance in more than two years last month, a key survey showed today.

The Chartered Institute of Purchasing and Supply's monthly snapshot of orders, output and confidence in the sector rose again, thanks mainly to stronger order books.

However, the reliability of the Cips survey has been called into question recently as official data showed the UK economy contracted again in the third quarter of the year despite the Cips report pointing to robust growth. Critics say that the Cips report simply has not been running long enough – it started in the mid-1990s – to give an accurate picture of economic turning points.

The Cips headline purchasing managers' index (PMI) rose to 56.9 last month from 55.3 in September, its highest since August 2007 and the sixth successive month above the 50 mark that separates growth from contraction.

Paul Smith, senior economist at Markit, said: "Growth of the UK se

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