IHS Markit reported on Monday its latest survey showed that the UK’s
private sector output expanded sharply in early February, as
the pace of growth of service sector activity quickened noticeably from last
month, underpinned by a rapid rebound in consumer spending on travel, leisure, and entertainment amid a rollback of the coronavirus restrictions in the UK.
According to the report, the seasonally adjusted IHS Markit/CIPS flash
UK services PMI business activity index came in at 60.8 in early February, sharply
up from 54.1 in January, signaling the strongest performance for the sector
since June 2021. Economists had forecast the indicator to rise to 55.5 in February.
Meanwhile, the seasonally adjusted IHS Markit/CIPS flash
UK manufacturing PMI remained unchanged at 57.3 early this month, as faster
production growth and a higher increase in stocks of purchases were offset by weaker
job creation. Economists had forecast the indicator to edge down to 57.2 in February.
Overall, the seasonally adjusted IHS Markit/CIPS flash
UK composite output index jumped to 60.2 in February, up from 54.2 in January.
This was the highest reading since June 2021 and exceed economists’ forecast of
55.0.