The UK economy rebounded in February, with business activity the strong since last June attributable to a recovery in consumer spending on travel, leisure and entertainment.
- The headline composite PMI index, which measures manufacturing and services activity, rose to 60.2 from 54.2 in January, signaling an eight-month high.
- The survey also indicated high inflation continued in February, as higher wages, energy bills and raw material costs also led to firms’ increasing operating expenses.
- Chris Williamson, chief business economist at Markit stated that the odds of an increasingly aggressive policy tightening have reduced, with the third consecutive rate hike looking highly likely in March.
- The output growth in the service economy topped the growth in the manufacturing sector as the supply chain issues signaled signs of easing.
February data signaled a sharp bounce back in service sector activity after a soft slump around the turn of the year due to Omicron variant restrictions on consumer services.
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Source: IHS Markit.