UK services sector posts fastest growth in eight months; Fed’s Powell urges prudence on interest rate cuts – as it happened

Rolling coverage of the latest economic and financial news, as pound hits lowest level since December

• Central banks must beat inflation before cutting interest rates, says OECD

This month's survey of UK purchasing managers also shows a rise in business optimism, despite concerns over geopolitical tensions, Brexit trade frictions and the looming UK general election.

Around 52% of the survey panel forecast a rise in business activity over the course of 2024, while only 12% predict a reduction.

Anecdotal evidence suggested that long-term business expansion plans and supportive economic conditions had underpinned service sector growth projections for the next 12 months. Some firms also cited a favourable impact from looser financial conditions and expected interest rate cuts.

Survey respondents nonetheless noted that geopolitical concerns, Brexit trade frictions, and domestic political uncertainty were all factors that could constrain business activity in the year ahead.