British services PMI up to 7-month high in March

British services purchasing managers' index (PMI) increased to 58.9 in March from 56.7 in February, indicating a marked pace of expansion that was the fastest since August 2014, reported by Markit Tuesday.

The index remained well above the 50.0 no-change mark, indicating that the pace of growth is in strong and expansionary territory.

The rate of expansion accelerated to a seven-month high, driven by a stronger rise in new business. Data showed the volume of new business rose for the twenty-seventh consecutive month.

Growth in activity was also attributed to a wider economic recovery, improving confidence, new customers and new product development.

The growth of the sector over the first quarter as a whole was faster than that seen in the final three months of last year, Markit added.

"March's UK Markit/CIPS (Chartered Institute of Procurement and Supply) report on services provided further reassurance that the economic recovery is still on a fast track despite the uncertainty created by the upcoming general election," said Samuel Tombs, senior British economist at Capital Economics, an economic research consultancy.

"With lower commodity prices, strong job growth and rising confidence all providing stimulus, there's every reason to expect 2015 to be another robust year for the UK economy," said Tombs.

The services sector dominates the British economy, contributing to around three quarters of the gross domestic product (GDP), according to the Office of National Statistics (ONS). Endit