Investing.com - Service sector activity in the U.K. expanded at the slowest pace in nine months in March, dampening optimism over the country’s economic outlook, industry data showed on Thursday.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index inched down to 57.6 last month from a reading of 58.2 in February. Analysts had expected the index to decline to 58.1 in March.
On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.
Commenting on the report, Chris Williamson, Chief Economist at survey compilers Markit said, “While March saw growth slow across the services, manufacturing and construction sectors, all three continue to expand at very strong rates, meaning the economy looks to have grown by at least 0.7% again in the first quarter.”
Following the release of that data, the pound turned lower against the U.S. dollar, with GBP/USD shedding 0.06% to trade at 1.6617, compared to 1.6630 ahead of the data.
Meanwhile, European stock markets remained mildly higher. London’s FTSE 100 inched up 0.3%, the Euro Stoxx 50 rose 0.2%, France's CAC 40 tacked on 0.1%, while Germany's DAX added 0.1%.