20th Feb 2026 09:44
(Alliance News) - Growth in both services and manufacturing sector activity in the UK was stronger than expected in February, which was however "another month of steep job losses", preliminary survey results published by S&P Global showed on Friday.
The flash UK purchasing managers' composite output index rose to a 22-month high of 53.9 points in February from 53.7 in January, beating the FXStreet-cited market consensus of 53.4 points, which would have meant a deceleration of growth. Climbing further above the neutral 50-point mark separating growth from contraction, it indicates the pace of activity accelerated in February.
The flash services business activity index came down a notch to 53.9 points in February from 54.0 points in January, beating the consensus of 53.6 points.
The flash manufacturing output index rose to a 17-month high of 53.6 points in February from 51.6 in January.
The flash manufacturing index jumped to an 18-month high of 52.0 points in February from 51.8 in January, beating the consensus of another 51.8 figure.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: "Despite enjoying higher demand for goods and services, companies remain focused on boosting productivity to cut costs, resulting in yet another month of steep job losses to prolong the continual jobs downturn that was initiated by the 2024 autumn budget."
He added: "The early PMI data for February bring further signs of an encouraging start to the year for the UK economy. A solid rise in output across manufacturing and services has been reported in both January and February, with the rate of expansion gaining pace. The survey data so far this year are consistent with gross domestic product rising by just over 0.3% in the first quarter if this performance is sustained into March."
Williamson continued: "Higher staffing costs, often attributed to budget policy changes, meant service sector inflation remained elevated. However, increased competition, especially in the manufacturing sector, is helping keep a lid on inflationary pressures. Bank of England policymakers will be encouraged by the indications of stronger economic growth, but the relatively modest price pressures being signalled and ongoing worrying labour market weakness will likely result in a growing call for further rate cuts."
The flash PMI survey draws upon a panel of 1,300 companies in the UK manufacturing and service sectors, with responses collected between February 10 and 18.
Final February data for UK manufacturing activity will be out on March 2, while services and composite indices will be released March 4.
By Tom Budszus, Alliance News slot editor
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