Service sector activity has grown at its fastest rate for over two years in February, according to the latest CIPS/Markit survey.

The index rose to 58.4 during February, up from 54.5 in January and the highest level since January 2007, while incoming new business rose at its fastest pace since September 2007.

Transport, storage and communications sectors saw the strongest gains in both activity and new business during February.

The sector continued to record job losses but at a much slower place than that witnessed in 2009.

Paul Smith, senior economist at Markit Economics, says: “The latest data confirms that the underlying trend in the private service sector remains positive and is on course to deliver a quarterly expansion above 1% in Q1. When combined with the positive manufacturing results, February’s PMI survey augurs well for the economy to build on the momentum of exiting recession in Q4.”