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Hopes rise that UK might avoid recession after services sector rebound

Pound edges up as stronger economic growth increases chances of further interest rate rises

A rebound across the UK’s services sector in February has raised hopes that the country might avoid recession in the first half of this year.

Analysts said the bigger than expected surge in business activity appeared to show that the UK would narrowly avoid a recession, though the squeeze on consumer spending from the energy crisis and a struggling manufacturing sector would continue to put the brakes on the economic recovery.

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