Solid UK services survey helps justify rate hike

LONDON (AP) - A day after the Bank of England raised interest rates for the first time in a decade, a closely watched survey shows the British economy in relatively good health.

In a monthly update, financial information firm IHS Markit found a "marked and accelerated" rise in service sector output. For an economy reliant on services, that's an important driver for growth.

The firm said Friday that its purchasing managers' index for the services sector rose to a six-month high of 55.6 points in October from 53.6 in September. Anything above 50 indicates expansion and the October reading points to healthy quarterly growth rate of 0.5 percent.

Chris Williamson, chief business economist at IHS Markit, said the survey provides "some justification" for Thursday's hike but cautioned that the outlook remains fragile.