UK services sector grows at fastest pace for more than a year

Survey finds new business and job creation picked up in December, but companies raised prices at fastest rate for five years

Britain's services sector grew at the fastest pace for 17 months in December, according to a survey that has raised hopes for a strong end to 2016 for the economy.

There was also a pick-up in new business and job creation, according to the poll of firms from the UK's biggest sector, which includes banks, hotels and transport. But news that companies increased their prices at the fastest pace for more than five years will intensify worries over the weak pound stoking inflation in the months ahead and raises the prospect of interest rates going up this year.

The UK all-sector #PMI hit a 17-month high in Dec, signalling +0.5% GDP in Q4. Faster growth seen in services, manufacturing & construction pic.twitter.com/iFyKgiAxLs