The UK's dominant services sector expanded at its fastest rate in a year last month, according to the latest PMI data, as falling inflation bolstered consumer confidence and business spending.

The data suggests that the UK economy is gaining momentum after a period of stagnation, with strong performance in professional services, technology, and travel. Employment in the sector also rose as firms increased hiring to meet rising demand.

"The service sector is the engine of the UK economy, and it's firing on all cylinders again," said a senior economist. "This reduces the immediate pressure for further interest rate cuts, though the Bank of England will remain cautious."

Despite the upbeat headline figures, some analysts cautioned that the manufacturing sector remains weak, and that high energy costs continue to put pressure on margins for smaller businesses. The ONS is expected to confirm the growth in its upcoming GDP estimate.