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US services industry contracts while growth in the UKslows
THEservices industry in America unexpectedly contracted in November, while growth in the services sector in the UK eased.
The US ISM non-manufacturing survey posted a reading of 48.7, below the 50 point that separates growth from contraction. This cast a cloud over the better news that has been emerging from the US jobs market over recent weeks.
The UK purchasing managers’ index (PMI) fell to 56.6 from the two-year high it reached in October, but encouragingly, new business grew at its fastest pace in two years.
In the Eurozone, the services sector expanded at its fastest rate in 23 months, led by Germany and France. Also boosting the region yesterday was the confirmation that it had exited recession in the third quarter.