UK PMI Services was finalized at 53.8 in February, down from January’s 54.3. PMI Composite was finalized at 53.0, up fractionally from January’s 52.9.
Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the trend as evidence that UK economy may be emerging from the shadows of a technical recession experienced in the latter half of 2023, suggesting a “turning of the corner” towards recovery.
Meanwhile, the service sector faces rising input costs, primarily driven by higher salary payments and increased shipping expenses. This led to the most significant input price inflation since September 2023.
Moreover, the pressure to maintain profit margins has prompted service providers to raise their prices at one of the quickest rates since the previous summer, reflecting the necessity to offset the surging staff costs.
