Britain's dominant service sector grew at its fastest pace in over a year last month, according to the latest PMI data, as cooling inflation began to loosen consumer purse strings.

The services index rose to 55.4, well above the 50.0 mark that separates expansion from contraction. Strength was noted particularly in financial services, professional consulting, and travel-related businesses.

"The economy is showing remarkable resilience," noted a senior economist at the Bank of England. "While we remain cautious, the risk of a technical recession appears to have receded significantly."

However, the report also highlighted persistent labor shortages in hospitality, which continue to drive wage pressure despite the overall easing of headline inflation.