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Key Points:
Summary:
A return to growth of the UK service sector was signalled at the start of 2013 as volumes of incoming new business increased and companies boosted capacity by adding to their payrolls.
Confidence in the future also strengthened, reaching an eight-month high, but margins continued to be squeezed as output charges rose at a considerably slower rate than input costs.
The headline seasonally adjusted Business Activity Index rose back above the 50.0 no-change mark in January to signal a return to expansion following December’s first fall in activity for two years. At 51.5, the index was indicative of a modest rise in activity, though still the best since last September.
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