UK services sector shrinks for third month in a row

Britain's services sector shrank for a third straight month in July but the pace of contraction slowed unexpectedly even as new business declined at the fastest rate in the survey's 12-year history.

The Chartered Institute of Purchasing and Supply/Markit's headline activity index for the sector rose to 47.4 last month from a seven-year low of 47.1 in June.

That was the third consecutive reading below the 50 mark which divides expansion from contraction but above the consensus forecast of 46.7.