It is projected that the Bank of England will change its growth forecasts in next week’s Inflation Report as the result of an increase in services sector activity.

Data showing the services sector dominating new orders at a record rate suggests that the UK’s economic growth is “booming”, according to economists. There is a renewed confidence among Britain’s companies, which is apparent in the rate of hiring new employees – it is at the fastest pace in more than 16 years.

"Business is picking up and firms are recruiting like we’ve never seen before,"explains Chris Williamson, an economist at Markit.

The data for October has overshadowed forecasts predicting a hiring index of just 59.8.  The Markit/CIPS UK Services Purchasing Managers' Index actually shows a rate of 62.5, which is the highest it has been since May 1997.  Service sector growth is partly boosted by growth in the financial sector and increase in mortgage activity.

According to economists, the UK economy is projected to grow by as much as 1.3% in the last quarter of 2013.  Private sector jobs continue to grow at a rate of approximately 100,000 per quarter; they averaged 70,000 over the last four quarters. Due to the rapid hiring, the unemployment rate is also expected to fall within the next year.

Thanks to this growth and the booming economy, experts believe that the Bank of England will revise its growth projections next week.