Britain's powerhouse services sector picked up pace in December, dampening fears that the economy is heading back to recession.
The Purchasing Manager's Index (PMI), released by Markit and Chartered Institute of Purchasing and Supply, showed activity in financial services, hotels, restaurants, hairdressers, transport and communications, grew at its fastest pace since July.
The figures highlight estimated GDP growth of up to 0.4% in the final quarter of 2011.
The December upturn in the sector, which makes up 75% of GDP, surprised economists, who feared a negative fourth quarter given the weak retail sector.
It comes on top of better-than-expected performances for the manufacturing and
construction sectors in December.
The latest data was released as the pound hit a 16-month high against the euro, suggesting even further that there is still life in the UK economy.

Read more here...