UK kicks off the year on upbeat note
BRITAIN'S economy looks to have got off to a flying start this year with news today of an acceleration in the services sector and another rise in house prices.
In the latest in a recent string of unexpectedly upbeat reports, the Chartered Institute of Purchasing and Supply said its closely-watched purchasing managers' index rose to 55.9 in January from 54.9 in December.
A reading above 50 indicates expansion. Confidence surged to a seven-month high.
CIPS said growth was particularly punchy in the IT and computing sector, but an improvement was seen across the board.
Anecdotal evidence suggested that activity in the wider economy was higher, and companies commented on an increased willingness among clients to commit new business spend,' it said.
The report came as the Halifax said house prices rose again in January and there are signs the property market is stabilising. The average price of a home rose by 0.8% to £163,748 following 1.4% gains in December. But the year-on-year rate of increase slipped to 13.7% - the weakest for three years.
Halifax chief economist Martin Ellis said the January rise in prices suggested the market was undergoing a 'measured slowdown'.
Geoff Dicks, economist at Royal Bank of Scotland, said: 'The non-manufacturing part of the economy appears to have made a good start to 2005.'
