UK service sector recovery gains momentum despite inflation pressures

Survey of hotels, restaurants and financial services sector shows growth amid staff shortages and supply chain crisis

Britain’s dominant services sector grew by more than expected last month despite a steep rise in inflationary pressures, according to a survey published as the Bank of England considers raising interest rates.

The latest snapshot from the closely watched IHS Markit and the Chartered Institute of Procurement and Supply (Cips) report showed activity in the services sector, which contributes about 80% to economic growth, gained momentum in October.