The Bank of England is likely to raise interest rates following a significant increase in the services sector, which reached an eight-month high, driven by investments in artificial intelligence. The S&P Global survey indicated a rebound in business activity, although input price inflation also rose to a five-month high.
Watch for the Bank of England's upcoming interest rate decision, as the services sector's growth may lead to tighter monetary policy. Monitor how businesses manage rising input costs and the impact on consumer prices, especially in the context of AI-driven demand.