The British service sector grew for the 15th month in a row in June, but the pace of growth continued to ease, figures published this morning showed.
The CIPS/Reuters business activity index recorded 56.8, down from 57.4 in May but well above the 50 mark which separates growth from contraction.
The survey showed that the level of new business continued to rise strongly last month, though some firms reported that they were having to work harder to secure new work.
Employment growth eased as more firms left staffing levels unchanged, partly because of increased costs. Firms reported that the main drivers of inflation were higher fuel costs, increased raw material prices and another interest rate rise.
The euro zone services index also slipped in June, to 55.3 from 55.8 in May, as high oil prices hit margins.
