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The UK services purchasing managers' index rose to 51.4 in July, up from 50.2 in June, according to IHS Markit.
The market had been expecting a more modest reading of 50.4.
The latest reading was the highest for nine months, but still well below the trend recorded since the recovery from the global financial crisis began in the second half of 2009, of 54.4, IHS Markit said.