The UK’s vast services sector, covering everything from restaurants to finance firms, experienced another month of strong activity in July, according to the latest data.

The closely-watched services purchasing managers index, compiled by Markit for the Chartered Institute of Purchasing and Supply (CIPS), hit 59.1 last month, an even stronger reading than June.

On the PMI scale a reading above 50 denotes growth, while a bigger number reflects a faster rate of expansion. In June the services PMI hit 57.7. The month-on-month increase was much higher than expectations.

Markit’s chief economist Chris Williamson said: “The vast services economy’s growth surge shows no sign of abating.

“The July PMI showed the sector expanding at the fastest rate since last November, as demand for services continued to increase at a rate rarely seen in the survey’s 18-year history.

He added: “The buoyancy of the services and construction sector PMIs suggest the domestic economy clearly continued to boom in July, offsetting the cooling of growth seen in the manufacturing sector.”

Previous PMIs this month showed the construction industry growing strongly, while manufacturing figures were broadly positive despite being the weakest in 12 months.