Services sector activity in the U.K. powered upwards to close the first quarter of the year, marking the highest rate of growth in over a year and signaling moderate growth to open 2011, according to The Daily Telegraph. On Tuesday, Markit/Chartered Institute of Purchasing and Supply reported that the services purchasing managers index jumped almost five points in March to 57.1, which is the second-largest monthly increase on record. The latest reading marks the highest rate of growth since February 2010.
Markit economist Paul Smith said that the March level of services activity may not be sustained in the coming months as “prospects for the year ahead slipped lower, and cost pressures remain elevated.” The group said that data suggests first quarter growth in the U.K. will likely be reported at around 0.8%, which is up from 0.5% previously. A separate report from the Organization for Economic Cooperation and Development forecast for gross domestic product growth of 1.5% in the U.K. for 2011, which is lower than previously forecast. The group said austerity measures would keep growth in the U.K. substantially below other leading economies in the coming months.
Click here to read the story on services growth from The Daily Telegraph.