A “sustained increase” in business activity across Britain's service sector has fuelled hopes that the UK's technical recession could already be in the rearview mirror.
At 53.8, S&P Global’s seasonally adjusted purchasing managers' index (PMI) reading for February was down on the 54.3 recorded in January, but buoyed by rising employment and new orders across the sector.
This was higher than at any time in the second half of 2023 when the UK slipped into technical recession, the financial information firm noted in a report.
"Another solid expansion of business activity across the service sector in February adds to signs that the UK economy has turned a corner after entering a technical recession,” S&P director Tim Moore said.
New orders buoyed the figures, with service providers reporting the fastest order book growth since May last year.
Staffing rates increased, though modestly as per S&P, by the fastest rate since July last year, meanwhile.
“A turnaround in customer demand and the prospect of interest cuts on the horizon helped to boost business optimism across the service economy,” Moore added.
That said, higher shipping and salary costs meant input price growth was at its highest in five months, adding to “signs of robust domestic inflationary pressures”.