Growth in Britain's service sector eased last month despite the strongest growth for seven years in new orders.
The CIPS/Reuters services index recorded 59.5, compared with 59.8 in January, but the expectations index fell to a four-month low. NTC Research, which compiles the survey, said a decline in confidence was down to higher interest rates and the strength of sterling. NTC added that concern about the strength of the European recovery was also showing.
Employment in the sector expanded for the sixth month, with the index recording 52.1 from 51.7 in January.
In the euro zone, a similar survey also showed the euro's strength affecting activity, as it hit demand from the manufacturing sector. The Reuters Eurozone Business Activity Index slipped to 56.2 from 57.3 in January
