U.K. Business Activity Nears Stabilization in February

Business activity in the United Kingdom improved in February to indicate a degree of stability, according to a report by IHS Markit.

• UK Services PMI Business Activity registered 49.5 in February versus eight-month low of 39.5 in January.
• The index fell below the 50.0 no-change threshold every month since November 2020 but the decline in service sector output slowed in February.
• New business volumes dropped slightly in February. Subdued demand was attributed to lack of sales opportunities and hesitancy among clients due to the COVID-19 pandemic. Brexit-related concerns were also cited in holding back sales to European Union customers.
• Manufacturing eased for the second month while the services sector remained in decline to narrow the gap between the two. 
• The employment index likewise rose to 49.7 in February from 45.5 in January to indicate close to stabilization.