UK Private Sector Growth Jumps to Eight-Month High as Restrictions Eased

The United Kingdom’s private sector output posted a swift rebound in February, marking its strongest performance in eight months due mainly to travel and leisure activities.

Source: IHS Markit

EWU was flat after hours.

The UK Composite Output Index stood at 60.2, following the 54.2 in January. This is the highest in eight months since June 2021, led mainly by higher consumer spending on travel, leisure, and entertainment.

The service economy output outpaced manufacturing during the month, but both recorded a sharp expansion compared with January. The business activity index activity was an eight-month high, while manufacturing output was a seven-month high.

Production volumes grew on the back of less material shortages, and easing global supply chain constraints. Firms also recorded a big jump in incoming new work, reflecting the trend for business activity.

The rate of input cost inflation recorded the biggest growth since November 2021, and the second-highest since data collection started in January 1998. Average prices grew at a softer rate than in the previous month.

The latest figures indicate a strong jump as COVID-19 containment restrictions were eased.