The UK economy’s powerhouse services sector moved firmly on to the front foot in April, stacking the odds against a return to the printing presses by the Bank of England’s rate-setters next week.
Services firms – accounting for more than three-quarters of the economy, from IT to accountancy and hotels to restaurants – enjoyed their best growth since the Olympics last month, according to the Chartered Institute of Purchasing & Supply. Its closely watched activity index, where a score over 50 indicates growth, improved to 52.9 in April from March’s 52.4.
The buoyant survey marked a hat-trick of good news after similar positive signs from builders and manufacturers during April. The UK avoided a triple-dip recession in the first quarter of 2013.
Chris Williamson, chief economist at the survey compilers Markit, said: “A broad-based improvement is becoming evident in the UK economy, greatly reducing the likelihood of the Bank of England seeing any need to increase its asset purchases in the immediate future.”
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies