Sentiment in the UK’s dominant services industry improved at the fastest rate in more than 15 years during the three months to May, according to the CBI.

The business group, which surveyed 151 large businesses, said firms across the sector have continued to recruit and increase expenditure on training.

Consumer services - hotels, bars, restaurants, travel and leisure firms and others in consumer-facing sectors - regarded levels of business to be comfortably above normal.

Business volumes rose strongly once more and growth is expected to pick up further in the coming quarter.

Meanwhile, employment in the sector grew strongly for the third consecutive quarter and training intentions for the next three months grew at the fastest rate since November 2007.

“With a full year of growth under their belts, service sector firms are more upbeat than they have been for a long time,” said Katja Hall, CBI deputy director-general.

“The recovery continues to strengthen with both consumer and business-facing firms taking on more staff and investing in training and IT."