The British service sector activity grew slightly more than expected in May but companies raised prices at their weakest rate in more than a year, a survey showed this morning.
The Chartered Institute for Purchasing and Supply/NTC index for activity in the services sector came in at 57.2. Any reading over 50 marks expansion.
May's reading matched April's 7-month low and was just above expectations.
The prices charged index fell to 52.5, the lowest since February 2006, from 53.9 in April, while firms' costs grew at their weakest pace this year with an index reading of 58.3, down from 58.6 in April.
The new business index picked up to a 4-month high at 57.6 and the employment index rose to a 3-month high of 54.1 as firms reported taking on more staff to cope with a higher workload.
But firms were less optimistic about their prospects 12 months ahead, with the business expectations index slipping to 72 from 75.3 in April, the weakest since last August.
