U.K. Services Bounce Back With Stronger-Than-Forecast Growth

Bloomberg.com — The U.K. services sector, the biggest part of the economy, grew more than forecast in May as the economy continued to plot a modest recovery from the snow disruption of the first quarter.

IHS Markit said Tuesday its Purchasing Managers Index rose for a second month to 54 from 52.8. That beat the reading of 53 predicted in a Bloomberg survey. The pound jumped after the report and was up 0.5 percent to $1.3374 as of 9:38 a.m. London time.

Taken together with surveys on manufacturing and construction, the report suggest the economy is on course for growth of about 0.3 to 0.4 percent this quarter, Markit said. Expansion slowed to just 0.1 percent in the first three months of the year.