UK services sector expands at fastest rate this year

Rebound in March despite evidence that inflation is hitting spending in hotels, restaurants, gyms and hairdressers

Britain's services firms have bounced back from a new year lull to expand at the fastest rate since late 2016.

The latest health check of a sector that accounts for more than 75% of the economy's output showed the pace of activity picking up to a three-month high in March.

Related: UK services sector growth hits three-month high, as car sales smash records - business live