Britain's services economy expanded for a second month running in March, though the rate of growth slowed slightly.
S&P Global/CIPS UK Services PMI, which tracks the UK's service sector, came in at 52.9 compared to February’s 53.5 though any number above 50 is still considered expansion.
Services account for 79% of GDP and 82% of employment and are the key component of the UK's economy.
According to the data, the sector was helped by the largest increase in new orders since March 2022 and a slight increase in employment levels.
“Export sales provided an additional boost to the service economy during March as the ongoing recovery in business travel and events helped to drive the fastest rise in new orders from abroad for at least eight and a half years,” said Tim Moore, economics director at S&P Global Market Intelligence which compiles the survey.
The increase in prices charged to customers also dropped to a 19-month low, although it is still higher than in any period between 1996, when the survey began, and 2021.
Costs also eased to their lowest point in almost two years, albeit they remained strong.
All-in-all the outlook for the UK economy also looks brighter according to Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
The wider composite PMI, which features the services and manufacturing sectors “continues to point to a gradual recovery in business activity in the first quarter,” Tombs said.
“Businesses expect the recovery to strengthen over the coming months; the future activity index increased to a 12-month high of 71.1 in March, from 70.0 in February.”