UK service sector activity smashes forecasts

PMI survey shows fastest rate of growth since January but business confidence has been shaken by spectre of inflation and political uncertainty

Britain's economy looks on course for a solid finish to the year after a closely watched business survey for last month smashed expectations, although worries about inflation and political uncertainty are making firms nervous about 2017.

Companies in the UK's services sector, which spans banking to hotels, enjoyed the fastest growth in activity since January as they continued to recover from a short, sharp downturn following the Brexit vote. The report chimed with other indicators suggesting businesses and consumers have shrugged off the referendum result for now.

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UK firms' input costs have risen at the fastest rate for 5 years so far in Q4. Either margins will be squeezed or consumer prices will rise pic.twitter.com/Mjcs5JwC4n