Service sector slumps to 8-month low

  • By Josh Hall
  • 4 July 2012
Service sector slumps to 8-month low

Growth in the UK service sector fell in June to its lowest level for eight months.

The latest Markit/Cips survey dipped to 51.3 during the month, following a reading of 53.3 in May. Subdued effective demand and the series of bank holidays were blamed for the fall.

The poor results came despite widespread price cuts across the sector.

The news has revived the possibility of further quantitative easing. The Bank of England’s Monetary Policy Committee will meet tomorrow to decide whether or not to expand its stimulus.

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