LONDON, Aug 5 Reuters British services companies reported an influx of new orders and the biggest rise in employment for over a year during July as optimism rose on the back of Prime Minister Keir Starmer39;s election victory, a survey showed on Monday.

The SP Global UK Services Purchasing Managers Index rose in July to 52.5 from 52.1 in June and revised up slightly from a preliminary estimate of 52.4.

The survey added to signs of an upturn in business sentiment since the July 4 election which delivered a landslide victory for Starmer39;s Labour Party.

A gauge of new business rose to its highest level since May last year while the future activity index struck a fivemonth high something that survey compiler SP Global linked to the election outcome and expectations for lower interest rates.

The Bank of England cut interest rates last week for the first time since March 2020, to 5.0 from a 16year high of 5.25.

Albeit only one month into the second half of 2024, the latest survey results bode well for a reasonable GDP growth print in Q3, said Joe Hayes, principal economist at SP Global Market Intelligence.

He said price pressures, while close to their lowest since early 2021, remained historically high a worry for the BoE, which signalled it will take a cautious approach about cutting interest rates further.

The composite PMI which combines the services data with last week39;s manufacturing survey rose in July to 52.8 from 52.3 in June and revised up from a flash…