LONDON (MNI) – UK service sector output fell sharply on the month
in October, hit by the weakness of the banking, telecommunications and
computer services sectors
The first official services output data for the fourth quarter
showed the sector struggling. Services output fell 0.7% on the month,
and was up just 0.2% on a three monthly basis.
The monthly decline was largely attributable to a 2.5% fall in
transport, storage and communication and a 0.7% fall in business
services and finance.
Four out of five sub-components within business services fell with
the key decline a 1.5% fall in financial services except pensions and
insurance – a sub-sector which is dominated by banking.
In telecommunications seven out of eight components fell, with
computer programming down 4.2%.
Service sector output was up 1.1% on the year, with three of the
four main components rising. At a time when the government is
determined to press down on spending, the biggest contribution to yearly
services growth came from government and other services, which was up
2.3%.
In light of government policies, it is unlikely this sector can
continue to support growth.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
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