The Markit/CIPS Purchasing Managers’ Index® (PMI®) for the services sector showed backlogs rise at the sharpest rate since February 2000.
As business confidence strengthens to highest level for 15 months, the index posted at 60.2, up from last month's 56.9.
David Noble, CIPS CEO commented: " The services sector stormed to a six year high in July, registering levels of performance not seen since before the finanical crisis. Combined with the manufacturing and construction figures, this is the clearest sign yet that the UK economy is experiencing a broad vased economic recovery and has the momentum to deliver continued growth.
"The seventh month of sustained acelerated growth in services was underpinned by improved market conditions both domestically and abroad. Business confidence for UK services is now the highest it has been for 15 months, allowing business to expand, develop new products and increase their fees.
"The steep rise in new business and the sharpest rise in backlogs of work since 2010 have put some pressure on capavcity, giving firms the conviction to take on more staff and increase wages, which have been stagnant for a long time. Taken together, these could signal a significant month in the turnaround of the fortunes of UK plc."
will be something to watch in the coming months."
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