The UK service Industry experiencing unexpected growth.

The services industry across banking to airliners has shown growth rates in February that represent a five month high, as companies have raised their prices.

This is a positive sign that suggests that the predicted slowdown as espoused by the Bank of England has yet to materialize.

The Chartered Institute of Purchasing and Supply revealed that index prices are up by 1.5 percent since September 2007 whilst the report also indicated that the economy has maintained its current momentum.

Although the report itself excludes the retail industry consumer spending may slow following a 0.2 percent growth in the fourth quarter, which is the lowest rate in more than a year.

The Nationwide Building society said today that shoppers are currently experiencing the lowest levels of confidence in over three years.

In the US however a different pattern has emerged at their service industry which accounts for three quarters of their economy, grew at the slowest pace in more than a year in the fourth quarter. This is further accentuated by the fall in house prices which has resulted in banks making reported losses of $181 billion in asset writedowns and credit losses.

According to the CEO of Barclays Plc, John Varley profits will continue to fall as bad debts increased by 67 percent resulting in a loss of 1.84 billion. These substantial losses indicate a truer reflection of the state of the UK and US economies.

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