Britons splash out on holidays in boost for UK economy

Report shows fastest rebound in private sector output in a year, with interest rate rise likely next month

Consumers splashing out on holidays has helped put Britain’s economy on track to avoid predictions of a contraction in the first three months of the year, paving the way for the Bank of England to raise interest rates next month.

The latest monthly snapshot from S&P Global and the Chartered Institute of Procurement and Supply (Cips) showed the fastest rebound in private sector output in a year, fuelled by rising spending on travel, leisure and entertainment.