"A slide back into recession is now looking increasingly unlikely"
- Chris Williamson, chief economist at Markit
U.K. service sector expanded in January at faster pace, compared to December, raising hopes the country may avoid recession. The Markit/Cips services purchasing managers' index (PMI) rose to 56 from 54 in October, said the Markit research agency on Monday. Reading above 50.0 indicates industry expansion.
"A slide back into recession is now looking increasingly unlikely," Chris Williamson, chief economist at Markit, said in the statement. "Much uncertainty persists, but this is nevertheless a far better start to 2012 than almost all were expecting to see."
"Given all the concerns about the weakness of activity in Q4, the prospect of a double-dip recession, I think those fears now appear to be dispelled to a large extent," said Commerzbank economist Peter Dixon.
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