Investments  

Strong services data points to better UK growth

Markit has suggested that the UK’s economic growth could accelerate in the second quarter of 2014 following strong data from the services sector.

The firm’s Purchasing Managers’ index (PMI) data for April suggested that the services sector has expanded at its fastest rate so far in 2014.

The services sector PMI recorded a reading of 58.7 in April, up from 57.6 in March, with any reading above 50 indicating an expansion.

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Chris Williamson, chief economist at Markit, said: “The UK economic recovery shows no signs of running out of steam, and growth could even accelerate further in the second quarter.”

The upturn in service sector growth matches a similar acceleration to a near-record high for manufacturing output, while construction activity also continues to surge higher.

Mr Williamson added: “The April numbers point to the economy growing by at least 0.8 per cent again in the second quarter and, with confidence about the future rising again in April, there’s no end in sight for the current super-strong growth spell.”