Survey shows UK economy picked up in February

A closely monitored survey is indicating that the British economy picked up in February following a subdued start to the year, with the crucial services sector shoring up growth.

In a survey Monday, financial information firm IHS Markit and the Chartered Institute for Procurement & Supply, said their 'all-sector' purchasing managers' index — a broad gauge of economic activity — rose from 53.1 points in January, its lowest since August 2016, to 54.2 in February.

Howard Archer, chief economic advisor to the EY ITEM Club, a forecaster that uses the model of Britain's Treasury to assess the economy, says the survey was "reasonably reassuring." He said it reinforces his belief that the Bank of England will raise its main interest rate by a quarter percentage point to 0.75 percent.