LONDON, Feb 5 Reuters British services businesses started 2024 on a robust footing, with a solid inflow of new orders and the fastest hiring in six months, as the prospect of lower interest rates made customers more willing to spend, a survey showed on Monday.

The SP Global services PMI for Britain rose to 54.3 in January from 53.4 in December, its highest reading since May 2023 and stronger than an initial estimate of 53.8.

New orders have also rebounded this winter as receding recession risks and looser financial conditions led to greater willingnesstospend among clients, Tim Moore, economics director at SP Global Market Intelligence, said.

The strong picture for services contrasted with weak manufacturing numbers released on Thursday, when factories reported delays to deliveries from east Asia due to attacks on shipping in the Red Sea.

The composite PMI, which combines the two surveys, rose to an eightmonth high of 52.9 in January from 52.1 in December, reflecting the greater weight of the larger services sector.

Last week the Bank of England forecast Britain39;s economy would slowly pick up over the course of 2024, after stagnating in the second half of last year, reflecting falling inflation and market expectations that it would cut interest rates.

However, the BoE39;s chief economist, Huw Pill, said a cut in rates from their current 5.25 was still likely to be some way off, as the central bank remained concerned about rapid rises in wages and the cost of…