Britain's services economy expanded at a slightly weaker than expected pace last month, but the sector is still in good shape and could help boost overall growth in the second quarter, a survey showed on Wednesday.
The Chartered Institute of Purchasing and Supply/RBS business activity index eased to 58.7 in June from 59.2 in May and was slightly weaker than analysts' forecasts of 59.0.
Short sterling interest rate futures ticked up after the data, but economists said the results did not alter the outlook for interest rates, which the Bank of England looks sure to keep pegged at 4.5 percent on Thursday and for some months to come.
"The services survey will do little to alter the view that interest rates will rise, but probably not in the near term," said Howard Archer, economist at Global Insight.
Indeed, all of the survey's components were comfortably above the 50.0 level that divides expansion from contraction, while employment was up at its strongest pace in eight years.
Economists said figures over the last three months suggested the sector would make a bigger contribution to gross domestic product in the second quarter, contrasting with official data this week showing services output had stalled in April.
"In Q2 as a whole, the index stood at an average of 59.2, its highest since the start of 2004 and consistent with somewhat above-trend growth during the quarter," said George Buckley, chief UK economist at Deutsche Bank.
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