Optimism as UK service sector grows
The services sector – which accounts for around three-quarters of Britain’s economy – grew at its fastest pace in April since last summer’s Olympics, boosted by the strongest increase in new orders in almost a year.
Along with recent forecast-beating gross domestic product data and manufacturing and construction surveys, yesterday’s services reading will ease pressure on the Government to water down its austerity programme, even after a poor showing in the local elections.
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Hide AdIt also reinforces expectations that the Bank of England will refrain from further stimulus at its next meeting.
“Today’s release marks a hat-trick of upside surprises for April,” said Simon Hayes, UK economist at Barclays.
He added: “Recent activity indicators have had a more encouraging tone.”