Data shows service sector endured a painful June

The latest data, which suggested the country stayed in recession in the quarter that ended last weekend, solidified expectations the Bank of England will restart the printing presses with another round of bond purchases when it meets today.

The Markit/CIPS Purchasing Managers’ Index (PMI) for services, which account for around three-quarters of the country’s economic output, sank to an eight-month low of 51.3 from May’s 53.3, despite firms cutting prices and running down existing orders.

“The services economy saw one of its worst months since the recovery began three years ago, with the June survey showing signs of growth stalling,” said Chris Williamson, chief economist at data compiler Markit.

Meanwhile, surveys of businesses in the Yorkshire and Humber regions painted a picture of caution.

Leeds, York and North Yorkshire Chamber of Commerce said that both manufacturing and service sectors reported a slowdown in domestic sales and orders in the second quarter of 2012, although both are still in positive terri- tory.

It also said policy makers should be concerned about the slowing down of overseas sales and orders, contradicting the national trend shown by the British Chambers of Commerce. Mark Goldstone, head of policy and representation at Leeds, York and North Yorkshire Chamber of Commerce, said generally businesses across the region are still reporting “sluggish growth and caution”.

The latest quarterly survey by Hull and Humber Chamber of Commerce showed that exports in the region are growing, though UK sales have taken a fall. Business confidence was mixed, with the overall balance of turnover expectations seeing a drop, despite profit expectations continuing to rise.

Meanwhile, Sheffied Chamber of Commerce’s latest quarterly survey revealed that the service sector has indicated an increase in export sales and orders, while UK sales and orders have also improved.

Manufacturing saw a slight increase in export sales and orders, but UK sales and orders remain low, it said.

Today, research by Experian reveals that the total value of UK mergers, acquisitions, flotations, right issues and placements was £141bn during the first six months of 2012, an increase of 29 per cent on the total disclosed value during the same period in 2011.

Meanwhile, the total volume of deals announced across the UK during the first half of 2012 fell by just over 10 per cent – from 2,339 transactions in the first half of 2011 to 2,084 so far this year.

In Yorkshire, the value of deals announced in the first half of 2012 was £695m, a decrease from £1.9bn.