UK services sector is 'driving force behind economic growth'

THE services sector is the "driving force" behind the UK economy's marginal growth gains while other sectors have delivered an increasingly lacklustre performance, research suggests.

- By Mauricio Alencar

Chancellor Rachel Reeves has been urged to ease cost pressures on firms as her £25billion hikes on employers' National Insurance contributions, coming into effect this week, have weighed down on business confidence.

But one area of the economy has remained resilient amid strong economic headwinds, according to the Output Index from consultancy BDO.

Services drove an increase in output in March, according to BDO's poll which considers data from sources including S&P Global, the OECD and the British Chamber of Commerce.