British service sector provided a positive end in the final month of 2011 with activity and incoming new business both rising at the strongest rates since July last year, said the CIPS/Markit on Thursday.
The purchasing Managers' Index (PMI) for December 2011 was 54.0, up from 52.1 in November, driven by a solid increase in new business, said CIPS/Markit report. Any figure over 50 indicates that the sector is growing.
"Service sector companies reported surprisingly buoyant business conditions in December," said Chris Williamson, chief economist of CIPS/Markit and author of the survey report.
Williamson said the December survey rounds off a reasonable fourth quarter for the service sector, which is likely to again provide the main stimulus to overall economic growth.
Meanwhile, services are likely to have expanded by around 0.3-0.4 percent in the final quarter of 2011, down from 0.7 percent in the third quarter.
However, the economic climate remained tough, reflected by continued margin pressure such as sharp costs rising but output charges moving slowly, said the report.
Confidence about the future remains subdued, with business expectations matching September's two-and-a-half year low.
The service sector accounts for more than 70 percent of the Britain's economic output./.