Rise in UK services PMI eases recession fears

Britain's dominant services sector grew at its fastest pace in 10 months in January, reflecting a more optimistic company view, the Markit/CIPS Purchasing Managers' Index (PMI) showed.

The services PMI index rose to 56.0 from 54.0 in December, confounding forecasts for a dip to 53.5 and climbing higher above the 50 mark which separates growth from contraction, Reuters reports.

Markit also reported the largest monthly rise in business optimism since the survey was founded 15 years ago. An increase in new business drove employment in the sect to rise at its fastest pace since March 2008, the data showed.

The data contrasts with the National Institute for Economic and Social Research (NIESR)'s warning the UK is heading into recession, with a 0.1% contraction expected this year.