The crucial UK services sector, which makes up 75 per cent of the economy, grew rapidly in July, according to the Office for National Statistics. Output rose 1.1 per cent in the month compared with a 1.5 per cent decline in June.
Because of the Diamond Jubilee, the end-of-May bank holiday was moved to June and an additional bank holiday was added to the month. This meant two fewer working days in June, which undoubtedly contributed to the strong month-on-month growth rate for July. Year on year, though, three of the four main components of the services sector – government, business services and financials – rose.
The service sector's return to growth is an important indicator for the general health of the UK economy.
Daniel Solomon, economist at the Centre for Economic and Business Research, said: "By showing growth in the UK's large services sector, the figures indicate that the UK could soon exit technical recession."