Fears of a triple-dip recession have receded after Britain’s powerhouse services sector bounced back to growth in January and confidence recovered to levels not seen for eight months.

Economists said the UK was back in growth mode after the 0.3pc dip in the final three months of last year, following better-than-expected activity in the services sector, which is comprised of a range of businesses from hotels to accounting firms and contributes three-quarters of national output.

The Markit/CIPS Purchasing Managers' Index (PMI) rose to 51.5 from 48.9 in December – the first time the sector shrank in two years where a reading above 50 signals growth.