Service sectors see Europe-wide spending rise

THE European services industry, including companies such as airlines and banks, grew for the first time this year in July, another sign consumer and corporate spending is picking up and spurring economic growth.

A survey of about 2,000 companies compiled by NTC Research in England, rose to 50.2 in July from 48.2 in June, better than the 48.7 expected. A reading of more than 50 indicates expansion.

Business confidence in Germany and France, the biggest economies in the 12 euro nations, rose in July, after the European Central Bank cut its benchmark lending rate to a 50-year low. The falling cost of money is fuelling spending on homes, stocks and bonds and holidays, boosting services, which accounts for more than half of Europe’s $8 trillion economy. “Housing credit is still going up,” said Filipe Pinhal, vice chairman of Banco Comercial Portugues , Portugal’s second biggest bank. “We’re seeing a trend of people changing for better homes.”