By Jonathan Davies

The UK services sector has reported its strongest growth in almost a year, according to a closely watched survey.

The Markit/CIPS UK Purchasing Managers' Index (PMI) reported a figure of 60.5 in August, up from 59.1 in July. Any figure above 50 indicates growth and August represents the single largest monthly growth since October 2013.

The services sector is a vital part of the UK economy, it accounts for around 70% of GDP. Demand for services remained strong in August, with marketing activity increasing as a result.

But there were concerns about the future level of business in the UK, which led to business confidence falling to a 15-month low.

"An acceleration of growth in the vast services sector and an on-going construction boom offset a weakened performance in manufacturing in August," said Chris Williamson, chief economist at Markit.

The eurozone equivalent of the survey found growth to have slowed to its weakest rate since the start of the year.

Economists now expect the European Central Bank to raise interest rates when it announces its decision tomorrow (Thursday).

Do you run a business in the services sector? Was August a good month for you? You can email your reactions to editor@freshbusinessthinking.com

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