-Confederation of British Industries
Business activity growth in the UK services sector, which accounts for some 78% of the nation's economy, accelerated to the highest level in seven month in March as the whole economy picked up steam in the beginning of 2015. According to Markit, services PMI rose to 58.9 from 56.7 in February, whereas economists had predicted the reading to climb to 57.0. Markit's services survey showed employment growth remaining close to a record high in March and signs of inflation climbing. Taking into account the previous week's data on manufacturing and construction, the economy is expected to grow 0.7% in the three months through March following the 0.6% rise at the end of 2014. Despite the economy already reaching pre-crisis levels last year and keeping momentum further into the medium term, economists expect the Bank of England to stay in its comfort zone in April and most probably for the major remainder of the year. BoE policy makers gather on Thursday and are seen to keep the base rate unchanged at the record low of 0.5%, marking the seventh year of ultra accommodative policy.
According to the latest growth survey of the Confederation of British Industries, the UK economy managed to keep up pace in the first quarter and is expected to grow stronger moving further into the year.
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