LONDON (MarketWatch) -- U.K. CIPS/Markit August services purchasing managers index rose to 54.1 in August from 53.2 in July, the highest reading in nearly two years. Higher activity was supported by solid gains in new business alongside work on existing contracts, with backlogs falling at a steep and accelerated rate, it said. The ongoing positive trend in activity supported expectations for the coming year, with confidence reaching a two-year high. However, the increase in new business was in part driven by ongoing price discounting, amid reports that the marketplace remained competitive and underlying demand fragile, it added. http://www.marketwatch.com/story/uk-services-pmi-highest-in-nearly-two-years-2009-09-03-434160