Britain's service sector grew at a slightly slower pace in April as short-term uncertainty pushed down business confidence to a two-year low just ahead of today's election, a survey showed.
The Chartered Institute of Purchasing and Supply/NTC said its index of service sector business activity index slipped to 56.5 in April from 57.0 in March, matching analyst forecasts.
The figures are unlikely to alter expectations that the Bank of England will leave interest rates at 4.75 per cent for the ninth month running next week.
The slowdown was driven by weaker growth in new business, with the new orders index falling to 55.6 in April from 56.9. Some companies said the collapse of MG Rover, which also hit manufacturing business during the month, hurt new orders.
Still, the key index held above the 50 mark that divides expansion from contraction for the 25th consecutive month indicating robust growth; employment growth also picked up to its sharpest pace since November.
But service companies were less optimistic about their outlook. The business expectations index fell sharply to 71.8 last month, its weakest since April 2003, from 75.5.