UK service companies anxious about year ahead

PMI rises to 55.6 in January, but expectations for next 12 months fall to three-year low

Britain's service sector surprised the City with stronger growth last month, but worries about financial market turmoil and the possibility of "Brexit" pushed business confidence to a three-year low.

The Markit/Cips services purchasing managers' index edged up to 55.6 in January from 55.5 in December, confounding expectations of a dip to 55.3. The figures come ahead of the latest Bank of England interest rate decision on Thursday, which is expected to see rates kept at the current level. Many economists do not expect a rate rise any time soon, while traders on money markets have pushed back their expectations to early 2018.

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