U.K flash Composite Output Index hit a 2-month high of 49.8 in February, up from January’s 41.2, according to IHS Markit press release. Service Business Activity Index reached a 4-month high of 49.7, up from January’s 39.5 to signal recoveries from the sharp downturns at the start of the year.
- Despite the rise in service activity, U.K recorded a slump in manufacturing output as the index fell from 50.7 in January to a 9-month low of 50.5.
- Flash Manufacturing PMI hit a 2-month high of 54.9, up from January’s 54.1
- Manufacturing firms faced severe supply chain disruptions relating to international shipping delays, strong worldwide demand for raw materials, and Brexit-related frictions.
- Service sector activity still remained severely impacted by the coronavirus pandemic in February as output was suppressed by tighter restrictions on travel, leisure, and hospitality.
- Export sales remained weak across the manufacturing sector while new order volumes and employment fell marginally in February.
- Business expectations for the next 12 months picked up in February and were the highest since April 2014
- The rate of output price inflation rose the fastest since January 201, leading to the strongest increase in average prices.
U.K stocks and the pound are currently gaining. FTSE 100 is up 0.225%, GBPUSD is up 0.44%