Services PMI stronger than preliminary Dec reading
BoE data shows net consumer borrowing strongest since 2017
Mortgage approvals also above Reuters poll forecasts
Recession risks seen receding
Economy will be centre ground of expected UK election

LONDON, Jan 4 Reuters Britain39;s economy ended 2023 on a stronger footing than previously thought, according to a survey of businesses, amid other signs that the Bank of England39;s high interest rate campaign might not trigger a recession.

With Prime Minister Rishi Sunak hoping for better economic news before an election expected later this year, Thursday39;s data suggested businesses and households are weathering the storm of high inflation and borrowing costs at a 15year peak.

The final SP GlobalCIPS UK Services Purchasing Managers39; Index PMI rose to 53.4 in December, showing the sector grew more strongly in December than an initial reading of 52.7 and November39;s 50.9.

Expectations for future activity rose to the highest since May.

The further rebound in December39;s PMI suggests a recession should be narrowly avoided, Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said.

The survey, however, adds weight to our view that activity should rise gradually over the course of 2024.

Data from the Bank of England also released on Thursday showed net borrowing by British consumers was the highest in nearly seven years in November when retail sales leapt and lenders approved the most mortgages…