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Sector of Great Britain, which included banks, insurers, hotels services and hair salons, grew in October at a modest pace. Photo: ALAMY

Global business activity index increased 53.2 month 52.8 in September last, reading higher since June and confounding predictions for a dip at 52.5.

Improvement was led by an increase in new business while expectations index fell to a full point and the employment index slipped back below 50 level separating expansion contraction as companies braced for upcoming harsh.

"Production and new orders, rates of expansion measures remain mild compared to long-term averages as companies continue to digest the true effects on the overall economy expenditure Review Government coalition," said Paul Smith, Senior Economist at Markit.

"The most recent data suggest that the sector is set to make a contribution of below GDP in the coming months."

Nevertheless, BoE decision makers are also likely to be affected by news more in addition to inflationary pressures in the service sector with companies ramping up their prices at the fastest pace in response to the increase in energy costs and salaries for two years.

PMIs Wednesday, which covers companies which composed of 40pc of GDP, came after an investigation unexpectedly robust manufacturing and data surprisingly low construction PMI activity this week.

Overall, the figures indicate economy Britain made a solid start for the last quarter of this year.

However, the investigation has also shown that firms remained cautious about the Outlook and want to see how the 83bn ￡ spending cuts made by the Government last month will affect people's spending decisions.

"A number of respondents reported the postponement of customer spending, reflecting continued uncertainty on the impact of spending reductions on the economy of the Government," said Markit.

"These new concerns dominate expectations of service providers, with business confidence remains historically sifted.

The business expectations index fell a complete point of 66.2 in September.

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