UK services unexpectedly strengthen

LONDON: UK services unexpectedly strengthened in March, easing concern that the economy may be heading for a triple-dip recession.

A gauge of activity rose to 52.4, the highest in seven months, from 51.8 in February, Markit Economics and the Chartered Institute of Purchasing and Supply said in London yesterday.

Economists had forecast 51.5, according to the median of 26 estimates in a Bloomberg survey. Readings above 50 indicate expansion.

While services grew last month, manufacturing and construction both shrank, according to separate reports, and Markit said its indices point to economic growth of just 0.1% this quarter. — Bloomberg