Business activity across the combined manufacturing and service sector broadly stagnated at the start of 2012, with the HSBC Composite Output Index falling from 50.8 to 49.7. There were divergences by industry, however, with continued manufacturing weakness contrasting with steady growth of services output. Nonetheless, the rate of expansion in service sector activity remained weak in the context of historic data, with the latest seasonally adjusted Business Activity Index reading of 52.5 down on the long-run trend (56.8). Behind the latest increase in service sector business activity was a further expansion of ... (full story)