Britain's dominant services sector grew more than expected last month, bouncing back from pre-election uncertainty in May.

The sector posted a reading of 58.5 on the closely-watched CIPS/Markit purchasing managers' index (PMI) survey, in which 50 separates growth from contraction. Economists had expected a reading of 57.3.

It is a sharp increase from 56.5 in May - which was the sharpest slowdown in growth for nearly four years.

Firms in the sector said they benefited from new product launches and other commercial initiatives that helped boost demand.

However, the report added that new order growth eased slightly, contributing to the first monthly decline in backlogs of work since March 2013.

The services sector makes up more than three-quarters of UK output and has led the economy out of its downturn while other areas of output remain stuck below pre-recession levels.

Chris Williamson, chief economist at survey compilers Markit, said: "The UK PMI surveys indicate that the pace of economic growth rebounded in June, recovering from what appears to have been a brief lull caused by the general election."

He said the services, construction and manufacturing PMI surveys this week suggested the UK economy will expand from 0.4% in the first quarter of the year to 0.5% in the three months to June.

However, the surveys highlighted that the recovery looks increasingly unbalanced. Services and construction both grew solidly, but manufacturing expanded at its slowest rate in more than two years last month.

Disposable incomes are rising thanks to a combination of ultra low inflation, rising wage growth and rock bottom interest rates, which is providing a welcome boost to family budgets.

While consumer prices index inflation - currently running at 0.1% - is expected to increase sharply towards the end of the year, experts believe wages will continue to outstrip rises in the cost of living.

Mr Williamson added: "While uncertainty caused by the Greek debt crisis rules out any imminent hike in interest rates, the post-election rebound in service sector business activity adds to the likelihood of the Bank of England starting to nudge rates higher later this year."

The data comes ahead of Chancellor George Osborne's summer Budget on July 8, which will see him set out the Conservative Government's spending priorities over the next five years.

IHS Global Insight chief UK economist Howard Archer said: "The improved services purchasing managers' survey provides a serious boost for hopes that UK gross domestic product growth improved appreciably in the second quarter and gives a lift to George Osborne as he prepares for next Wednesday's budget."