UK Service Sector may just pull the country out of recession, really?

So the past few months have been especially distressing for the Britons. With the decision of their Prime Minister David Cameron to quit talks with European countries and negotiations to quell the eurozone crisis seems to have landed the country in a bigger mess. Now that the European countries disregard to British trade concerns in the context of routing solutions through international organizations like European Commission and European Court, the fate of UK in terms of its sluggish recovery from its financial crisis has been casted with a gloomy shadow of its own decisions. While many, including the current opposition in the country have indicated their displeasure with Prime Minister Cameron’s handling of the situation, the country seems to have retained a characteristic slow pace of recovery and the discouragement rendered because of the unceremonious ouster from the European talks has began to show on many market indices.

However, there are some sectors in the British market that are holding up against this gloom and dismay and analysts have been lead to believe that perhaps there is hope for a rise from the financial  crisis through such sectors. Services in UK have added unprecedented and disproportional number of job in the months of December of last year and January. New business and existing ones in the UK service sector enjoyed the best growth period since July of last year and there is no reason why anyone would expect the trend to slowdown. Essentially, service sector comprises of hotels and restaurants, transport and banks. In the past few months since the European crisis became evident over the course of time, UK had been battling all the chances of getting sucked in a quagmire created out of the Eurozone crisis, but as tables turned since the talks in December last year, UK economy has only shown consistent growth in the services sector. Evidence reveals that the activity index of businesses in services rose from 54 to 56, well above the 50 mark which is indicative of expansion of the business as it progresses further.

Leave a Reply

 

Switch to our mobile site