The S&P Global UK services PMI survey showed its highest reading since April.
The UK’s services sector continued its recovery last month as activity grew at the fastest pace for four months, according to figures.
The S&P Global UK services PMI survey showed a reading of 52.5 in August, improving from 52.1 in July.
It was the highest reading since April.
Any reading above 50.0 means the sector is growing while any reading below signals it is contracting.
It was slightly weaker than expected, with economists having predicted a reading of 52.8 for the month.
Tim Moore, economics director at S&P Global Market Intelligence, said: “August data highlighted improving operating conditions across the UK service economy.
“Service providers are increasingly optimistic about the year ahead business outlook, with confidence levels now close to those seen just prior to the Middle East conflict.
“However, business activity growth projections were still subdued in comparison to long-run trends amid lingering worries about inflationary pressures and geopolitical tensions.”
