Buoyant services firms dent need for money-printing

Another dose of money-printing from the Bank of England looked off the agenda today after Britain’s powerhouse services firms produced their strongest growth since April last year.

The sector accounts for more than three-quarters of the economy, ranging from IT and accountancy to hotels and restaurants. The Chartered Institute of Purchasing & Supply’s closely watched activity index, where a score over 50 indicates growth, improved to 52.9 in April from March’s 52.4.

Services firms were bolstered by the strongest rise in new work since last May and firms also took on more staff. It comes after similar positive signs from the construction and manufacturing sectors during April, as well as the UK avoiding a triple-dip recession in the first quarter of 2013.

Chris Williamson, chief economist at 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.”

Cips chief executive David Noble added: “If steady growth can be maintained, the outlook for the sector may well brighten still further.”