UK service sector rounds off year with best month since June

The UK service sector had a strong performance in December 2023, with the final S&P Global UK services business activity index climbing to 53.4 points from 50.9 in November. This was above the 50.0 no-change mark for the second consecutive month, indicating expansion in the sector. The improvement in the service sector helped boost the wider private sector, as it is a major contributor to economic growth in the UK.

The S&P Global UK services business activity index measures the overall health of the UK service sector by tracking changes in key indicators such as new business, output, and employment. A reading above 50 indicates expansion, while a reading below 50 indicates contraction. The index has been closely monitoring the impact of the COVID-19 pandemic on the UK economy, and the recent improvement in the service sector is seen as a positive sign for the country's recovery.

The UK service sector accounts for around 80% of the country's GDP and employs over 40 million people. It includes a wide range of industries such as finance, healthcare, education, and hospitality. The recent improvement in the sector is likely due to a combination of factors, including increased consumer spending, government support for businesses, and the ongoing rollout of COVID-19 vaccines.

Overall, the strong performance of the UK service sector in December 2023 is a positive sign for the country's economic recovery and suggests that the sector is well-positioned to continue its growth in the coming months.