Service-based activity in the U.K. fell at a slower pace in the second quarter, with the index of services falling 0.6% during the three-months through June after slipping 1.0% in the previous month. The breakdown of the report showed Inventories fell 4.58 billion pounds as distribution (.2%), transport (-1.6%), motor trades (-1.8%), and wholesale (-.6%) displayed the largest margin of improvement compared to the data the last period. Nevertheless, 6 out of the 8 categories of services declined with only retail and hotels & restaurants surging in the period according to the National Statistics in London. The less than expected drop encourages an improved outlook for future growth as service-based activity accounts for more than two-thirds of the economy, and the Bank of England is widely expected keep the benchmark interest rate at the record low and maintain its GBP 175B in asset purchases to foster a sustainable recovery.
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