UK Services Activity Jumps to an 8-Month High in Feb., Inflation Escalates

Source: IHS Markit 

The UK Services Business Activity Index was posted at 60.5 in February, accelerating from 54.1 in January. The activity was at its highest since June last year. FTSE 100 is down -0.70%, GBPUSD is down -0.18%.

• The uptick in services activity in February coincided with a sharp rise in new orders, helped by the slowdowns in the Omicron Covid variant. 
• New businesses rose at a faster rate as the pandemic restrictions eased, and the additions were among the strongest in eight months. 
• New export orders increased for the second straight month and was the joint-fastest in the survey history.
• Prospects of further growth and rising workloads pushed hiring, with the uptick in employment the fastest since October last year. 
• Input costs rose in February, with the inflation rate the second-fastest. The rise in input costs pushed the output charge inflation which hit a record high in February.
• Service firms maintained strong optimism for this year, projecting more rises in demand as the pandemic impacts wane.