Robust services growth revives hopes for economy
Services recorded an activity reading of 52.4 in March - above the 50 mark which separates expansion from contraction, the Markit/Cips purchasing managers index (PMI) showed.
The figure is above the 51.8 reading in February and is the strongest in seven months from a sector which makes up more than three-quarters of the economy.
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Hide AdThe strength of the reading will keep alive hopes that the dominant sector grew enough to offset the shrinkage reported in PMI surveys of the smaller manufacturing and construction sectors in March.
Chris Williamson, chief economist at Markit, said business activity in the service sector grew in March at the fastest rate since the Olympics-related upturn seen last August.
“A gathering upturn in the service sector in March looks to have helped the UK avoid a triple-dip recession by the narrowest of margins,” he said.
Official figures for the UK economy as a whole will be published later this month, revealing wether the country is back in recession following a negative reading for the last quarter of 2012.