Economy picks up pace after slow start

THE economy picked up pace last month after a slow start to the year, while the resurgent eurozone slowed, latest figures show.

Research group Markit said its index of activity in the UK – where scores above 50 show growth – rose from 53.1 in January to 54.2 in February.

The report was a further sign that the British economy continues to defy warnings of a sharp Brexit-related slowdown. Markit said Britain is on course for expansion of 0.4pc in the first quarter of 2018 – although the final outcome could be weaker due to the freezing weather.

The rise in the overall index of activity was driven by a pick-up in the services sector, which includes everything from hotels to hairdressers.

The services index rose from 53 in January to 54.5 in February – its best for four months.

The eurozone economy has slowed following a surge in activity in recent months. The index of activity dipped from 58.8 to a still-healthy 57.1.