INSTANT VIEW - December services PMI edges up from record low

LONDON (Reuters) - Service sector activity shrank at a near-record pace in December and the climate for jobs is the worst on record, the monthly PMI survey by the Chartered Institute for Purchasing and Supply showed on Tuesday.

Businesses cut prices at their fastest-ever pace in December but this failed to boost demand much and the rate of decline in new business eased only fractionally as the credit crunch maintained its grip on the economy.

KEY FIGURES FOR CIPS/MARKIT UK SERVICES SURVEY

DEC NOV FORECAST

Services activity 40.2 40.1* 39.0

Unemployment 40.5* 43.1 -

* Record low

ANALYST COMMENT

ROSS WALKER, RBS