Financial Times FT.com

UK service sector activity accelerates

By Delphine Strauss

Published: March 5 2008 11:31 | Last updated: March 5 2008 11:31

Service sector activity accelerated unexpectedly in February as companies became more optimistic about winning new business and ever more inclined to raise prices, a survey showed on Wednesday.

The combination of stronger growth and intense inflationary pressures will cement expectations that the Bank of England’s monetary policy committee will leave interest rates unchanged at Thursday’s meeting and cut rates only when it sees more concrete evidence that output growth is slowing.

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