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"The debt crisis is still a key issue that undermined the euro"
- Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd.
U.K. service sector grew in December at its fastest pace since July. The Markit/Cips services purchasing managers' index (PMI) advanced to 54 from 52.1 in November, said the Markit research agency on Monday. Reading above 50.0 indicates industry expansion.
"There is still life in the U.K. economy," said James Knightley, an economist at ING Group in London. "Nonetheless, the U.K. is still very vulnerable to the euro-zone sovereign debt crisis given trade, financial and confidence linkages. Furthermore, confidence remains weak."
"The December survey rounds off a reasonable fourth quarter for the service sector, which is likely to again provide the main stimulus to overall economic growth," said Chris Williamson, chief economist at Markit.