UK services PMI jumps to 54.5 in February

Growth in the UK service sector pickedup pace and signaled the strongest rate of service sector output growth for four months, the latest report from Markit Economics showed this Monday. 

In fact, the seasonally adjusted IHS Markit/CIPS UK Services PMI® Business Activity Index registered 54.5 in February, up from 53.0 in January and was also better-than a reading of 53.3 anticipated.

Key Points:

   •  Business activity rises at fastest pace for four months
   •  Strongest upturn in new work since May 2017
   •  Input cost inflation lowest for a year-and-a-half

Chris Williamson, Chief Business Economist at IHS Markit, which compiles the survey commented: “The service sector overtook manufacturing as the fastest growing part of the economy for only the second time since the referendum in February, thanks to the combination of the largest rise in services activity for four months and waning growth of factory output.”