Growth in Britain's dominant service sector slowed a bit in March, but companies raised prices at their fastest rate in more than three years, a survey said today
The data is more evidence the British economy is growing strongly and experiencing more inflation than most of its trading partners and may put some pressure on the Bank of England to lift interest rates this week.
The March CIPS/Reuters services index, based on a survey of some 700 companies, slipped for a second month to 58.7 from 59.5 in February.
But it remained at a level which historically has pointed to robust, above-trend growth in the economy and was well above the 50 threshold that separates expansion from contraction.
"It still implies a fast rate of service sector growth," said Mr David Page, economist at Investec Securities in London.
Although the survey was conducted after the March 11th Madrid train bombings, there was no indication in the data from British companies that the attacks affected their business activity or confidence.
That stood in contrast to the eurozone PMI, which did show a Madrid effect, falling to a six-month low. The services index there slipped to 54.4 in March from 56.2.