"We've seen a further build-up of momentum in the service sector this quarter, with business and professional services firms in particular seeing a turnaround in their fortunes"
- Stephen Gifford, CBI director of economics
Britain's key service sector expanded at its fastest pace since before the financial crash of 2008, a new quarterly report showed. Activity at dominant sector increased sharply last quarter, reinforcing a view the economy has been turning the corner and is heading toward a year of two solid expansions. The Confederation of British Industries said the survey of 161 companies across the country showed business activity grew to its highest level since 2007, with confidence also rising strongly. This sector includes legal, accountancy and marketing firms, which saw their business volumes increasing at their fastest pace since November 2007, leading to the strongest growth in profits since February 2008, widely meeting analysts' expectations. Meanwhile, optimism about future prospects climbed to a fifteen-year high, rising at the fastest pace since records began in November 1998.
At the same time, amid speculations that the U.K. housing market is creating a bubble again, Bank of England Deputy Governor Charlie Bean tried to calm down markets, by saying he is not concerned about soaring property prices. While prices jumped to a seven-year high, Bean said the BoE is waiting for an increase in housing transactions and mentioned that home prices were rising in line with general inflation.
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