The UK service sector continued to grow in February, but at a slower rate, according to new data on Tuesday.
The S&P Global UK services business activity index posted 53.8 points in February, down from 54.3 points in January. It was also lower than the earlier ’flash’ reading of 54.3 points.
The index has now posted above the crucial 50.0 no-change value for four months in a row. Further, S&P noted that the index was still higher than at any time in the second half of 2023.
Tim Moore, economics director at S&P Global Market Intelligence, said: ‘Another solid expansion of business activity across the service sector in February adds to signs that the UK economy has turned a corner after entering a technical recession during the second half of 2023.’
The seasonally adjusted S&P Global UK composite PMI registered 53.0 points in February, up from 52.9 points in January. This was also lower than the earlier ’flash’ reading 53.3.
The index has now posted above the neutral 50.0 threshold for four months running.
Last Friday, new data showed that the seasonally adjusted S&P Global UK manufacturing PMI reading was 47.5 points in February, up from 47.0 in January and above the earlier flash estimate of 47.1.
The services PMI is compiled by S&P Global from responses to surveys sent out to around 650 service sector companies in the UK, while the composite PMI is the weighted average of both the services and manufacturing PMIs. Responses are collected in the second half of the month.
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