Services sector inches closer to return to growth

THE services sector inched closer to a return to growth for the first time in over two years in March, but declining new orders held companies back, according to a survey.

The NCB Purchasing Managers’ Index rose to 49.6 in March from 48.8 in February, reaching its highest level since January 2008 but failing to follow the manufacturing sector in breaking the 50 mark that separates growth from contraction.

Markit, which compiles the data, said the continued deterioration largely reflected lower new business, which fell again in March because of the fragile economic conditions and intense competition.