Service-based activity in the U.K. unexpectedly improved to 40.2 from 40.1 in November, but still remained near the record low level. The breakdown of the index shows that employment hit a new record low of 40.5, versus 43.1 in previous month. Despite the minor improvement, the data continues to support a bearish outlook for the British pound as the Bank of England is expected to ease policy further in the months ahead, and may continue to lower borrowing costs in 2009 as the economy faces its worst recession in over a decade.