December’s survey indicated a modest reduction of service sector activity, the first in two years, as incoming new work dropped marginally amid reports of a challenging trading environment. Backlogs of work continued to be cut, while employment was little changed. Expectations for activity over the coming year remained historically muted. The headline index from the survey – the seasonally adjusted Business Activity Index – recorded 48.9 in December, down from 50.2 in November. By posting below the 50.0 no-change mark that separates growth from contraction, the index signalled a modest reduction in UK service sector ... (full story)