Service sector perks up in April

LONDON (Reuters) - The service sector expanded in April at its fastest pace since January, although the less volatile three-month on three-month figure remained subdued, official data showed on Monday.

The Office for National Statistics said services output rose 0.8 percent in the month of April after a 0.2 percent monthly decline in March.

However, it cautioned that monthly readings are volatile and the timing of Easter made statistical adjustments for April particularly difficult.

In the three months to April compared with the previous three months, services output rose by 0.3 percent, the same as in the three months to March and the three months to February.

"The rebound in April will provide some comfort after the weakness we saw the first quarter but does not necessarily mean things will pick up," said Philip Shaw, chief economist at Investec.

"The numbers are prone to revision and other economic figures are looking weak."

Separate figures from the Bank of England showed the number of mortgages approved for British homebuyers fell to a record low 42,000 last month, suggesting further pain for the housing market.

For the month of April alone, all five services categories registered gains.

A breakdown by category over the three-month period showed business services and finance output fell by 0.3 percent, the first three-month on three-month fall since August 2002.