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According to the CIPS/Markit services PMI index, activity in the industry slowed by more than anticipated during January, with the index dropping from 56.8 in December to 54.5, Reuters reports
As a result, the pound fell against both the dollar and the euro, dipping to $1.6019 against its US counterpart - having been priced at $1.6052 prior to the announcement - and it hit a day-low of 87.53p versus the euro shortly after the statistics were announced.
Mark Bolsom of Travelex noted that the results indicate the country's economy still has a "fundamental weakness" and the "roaring recovery" promised by the government has not yet materialised.
"A double-dip recession remains a distinct possibility," he added, noting that consumers "are still feeling the pinch and can't afford to spend lavishly".
Posted by Greg Secker
