British service sector activity grew slightly more than expected in May but companies raised prices at their weakest rate in more than a year, a survey showed on Tuesday.
The Chartered Institute for Purchasing and Supply/NTC index for activity in the services sector -- covering companies ranging from telecoms providers to cafes -- came in at 57.2, well above the 50 divide between expansion and contraction.
May's reading matched April's 7-month low and was just above expectations in a Reuters poll of 57.0.
The prices charged index fell to 52.5, the lowest since February 2006, from 53.9 in April, while firms' costs grew at their weakest pace this year with an index reading of 58.3, down from 58.6 in April.