UK service sector recovers after Brexit dip but inflation looms

Markit forecasts economy will grow by 0.5% in final quarter as Barclaycard finds consumer spending is still rising

The UK economy is on course for a solid finish to the year after activity in the services sector picked up and consumer spending continued to rise last month. But there were fresh signs of concern about inflation as the weak pound raises the cost of fuel and other imports.

A closely watched survey of firms in Britain's dominant services sector, which spans banking to hotels, showed they enjoyed the fastest growth since January as they continued to recover from a short, sharp downturn following the Brexit vote. The Markit/CIPS UK services PMI [pdf] report chimed with other indicators suggesting businesses and consumers have shrugged off the referendum result for now.

Related: Consumer and business confidence tumbles in November, surveys find