Picture used for illustrative purpose. File

Gulf Today Report 

Since the outbreak of the virus, Britain has imposed three national lockdowns, putting the economy on track for a sharp contraction in early 2021.

However, the progress of vaccination has left services companies afloat, boosting confidence about recovery.

The final version of the IHS Markit/CIPS UK Composite Purchasing Managers' Index (PMI) - spanning services businesses and manufacturers - fell to 41.2 in January from 50.4 in December, far below the growth threshold of 50.0. 

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The pace of vaccine rollout in Britain boosted hope for the services firms, pushing to its highest since May 2014.

Bank of England will be holding off injecting more stimulus into the economy until lockdown across the country is eased.

Tim Moore, economics director at HIS Markit said, "while the UK economy is on course to contract sharply during the first quarter of 2021, businesses remain confident that pent-up demand and an easing of pandemic restrictions will provide a springboard to recovery later this year."