British services PMI falls to 57.4 in July

British services purchasing managers' index (PMI), a gauge measuring the industry activity, fell to 57.4 in July 2015 from 58.5 in a month prior, said Markit Economics Limited on Wednesday.

The reading was significantly lower than the market estimates consensus of 58.0, though recording the 31st successive month that the activity index staying above the 50.0 no-change mark.

Data showed that growth of business activity remained sharp, despite easing slightly since June, and was in line with the trend pace over the past two-and-a-half years of continuous expansion. New business rose at a faster rate, and the current sequence of job creation was maintained, though at a slower rate.

Chris Williamson, Chief Economist at Markit, said: "Deterioration in service sector growth is the latest in a stream of signals that the economy has slowed as we move into the second half of the year."

Despite the dip in the PMI, the services sector continues to act as the main driver of Britain's economic growth, which the data point to a 0.6 percent quarterly growth of GDP, added Williamson.

The services sector dominates the UK economy, contributing around three quarters of the GDP, according to Office of National Statistics (ONS).

Markit also expects that the Bank of England will most likely see no need to rush into hiking rates "any time soon", as the dovish policy makers will view the recent signs of cooling economic growth. Endit