By Claire West

Data released today (Friday) by The Office for National Statistics (ONS) showed that the seasonally adjusted Index of Services increased by 0.7 per cent in July 2012 compared with July 2011.

Three of the four service sector components increased in the most recent month compared with the same month a year ago.

Government & other services increased by 1.6 per cent and business services & finance increased by 0.8 per cent. These sectors were the largest contributions to the increase.
Between June 2012 and July 2012, service sector output increased by 1.1 per cent

In 2012, the end of May bank holiday was moved to June and there was an additional bank holiday added to June, due to the Diamond Jubilee. These changes resulted in two fewer working days in June, which may have had a contributing effect to the relatively strong month on month growth rate for July.