So much for the post Brexit vote recession!

Booming restaurants and hotels record best figures for 20 years Consumer spending hits 13 month high despite Project Fear

Britain will avoid recession as business bounces back after the Brexit vote, figures on the economy showed yesterday.

the huge services sector, which includes everything from hotels and restaurants to accountants and lawyers, clocked up its best month for at least 20 years in august, according to the report by research group Markit.

With factory output also rebounding after a slump in July, analysts said the economy is on course to carry on growing in the second half of the year.

that suggests Britain will avoid a recession, defined as two consecutive quarters of economic decline.

there was more good news with the pound hitting a seven-week high against the dollar and consumer spending jumping to a 13 month high as households splashed out in shops, pubs and restaurants. Households adopted a ‘ business as usual approach to spending’, according to Barclaycard. it revealed spending on credit and debit cards jumped 4.2 per cent in the year to august – the highest annual increase since July last year. Soaring temperatures prompted households to update their summer wardrobes, and spruce up their homes and gardens.

Barclaycard, which processed nearly half of credit and debit card transactions on the UK, said people had carried on spending after the referendum as they saw little change to their disposal income.

Paul Lockstone, managing director at Barclaycard said: ‘Consumer spending has continued to grow after the referendum, with august a particular stand-out month considering confidence in household finances remains low compared to levels seen last year.’

the reports are yet more evidence to confound doom-laden warnings by remain campaigners that a vote to leave the EU would be a disaster for the UK economy. the brighter outlook could also save hard- pressed savers from another cut in interest rates. the Bank of England last month reduced rates from 0.5 per cent to 0.25 per cent and warned further cuts may follow.

Sterling hit a seven-week high of $1.3375 before settling at $1.3295 – still well below its pre-referendum level of nearly $1.50. One analyst said British economy is in fact in a ‘sweet spot’ as the weak pound boosts exports and tourism.

Chris Williamson, chief economist at Markit, which published one of yesterday’s reports, said all the latest figures ‘suggest that an imminent recession will be avoided’.

He added: ‘We expect the economy to have eked out a modest expansion of 0.1 per cent in the third quarter. While there’s clearly been a sharp slowing in the pace of economic growth in the third quarter, the risk of imminent recession has fallen significantly.’

Markit said that at 52.9 its services index is now at its highest level since May – returning to pre-refer- endum levels following a sharp fall in July. although the index has been higher in the past, a 5.5 point month-on-month rise is the biggest since the survey began in 1996

Martin Beck, senior economic advisor to the Ernst and Young item Club, predicted growth of 0.2 per cent in the third quarter: ‘the likelihood of a recession this year is looking more remote.

adrian Lowcock, investment director at architas, part of savings giant axa Wealth, said: ‘the UK economy could be entering a bit of a sweet spot as it benefits from the fall in the pound.’

Laith Khalaf, senior analyst at stock broker Hargreaves Lansdown, added: ‘the service sector is the engine room of the UK economy, so a return to form represents a welcome vote of confidence.’

Eurosceptic tory MP Sir William Cash said: ‘the scaremongering was completely unjustified … the doom-mongers have been seen off.’

EVERY day seems to bring another piece of upbeat economic news to defy the apocalyptic predictions of the Brexit doom-mongers. Yesterday’s was among the most significant since the referendum, as data showed the UK services sector – which makes up a huge slice of the economy – had its best month for 20 years. Consumer spending on credit and debit cards is also growing, at its fastest rate for a year.

The raft of good news from across the economy has left in tatters former Chancellor George Osborne’s risible claim that a Leave vote would cause an ‘immediate and profound shock’ and push the economy into recession.

It will also inevitably raise questions about whether the Bank of England’s decision last month to cut interest rates further was premature.

Meanwhile, the list of countries lining up for trade deals with the UK grows ever longer. It now includes Australia and India and, yesterday China suggested it was open to the idea.

Of course, it is early days and Theresa May is right to warn there may be ‘difficult times ahead’. But with a fair economic wind behind her, Mrs May can negotiate Britain’s exit from the EU from a position of strength.