According to S&P Global/CIPS, the UK Services Purchasing Managers’ Index (PMI) rose to 53.3 in February, the highest level since June 2022, from 48.7 in January. This marks the first expansion in the UK service sector in six months, as the PMI index is above 50, indicating expansion.
The surge in new orders contributed to the increase in the PMI, reaching a nine-month high, along with a rise in employment. Additionally, the business sector has shown an increase in confidence in the next 12 months, while alleviating concerns about inflation.
Duncan Brock, Group Director at CIPS, commented on the rise, stating, “Encouragingly, the UK economy has shown signs of resilience with the steady easing of COVID restrictions, and businesses are beginning to open up to new orders and hiring opportunities after a tough period of contraction.”
The British economy has struggled with the COVID-19 pandemic and supply chain disruptions, with the service sector being hit particularly hard. The increase in the PMI index signals a possible recovery for the UK economy, albeit slowly.