Source: Sharecast
The 'flash' reading of the UK composite PMI – which measures activity in both the services and manufacturing sectors combined – fell to 50.5 this month from 50.6 in January, meeting analysts' predictions.
Growth unexpectedly picked up in the services sector, with the PMI rising to 51.1 from 50.9, ahead of the consensus forecast of 50.8.
However, industrial conditions worsened for the fourth consecutive month, with the contraction in manufacturing – represented by any figure under the neutral 50-point mark – falling from 48.3 to 46.4. This was well below the market estimate of 48.4 and the lowest level recorded since December 2023.
For both sectors combined, sales pipelines were said to have remained subdued as total new work fell for the third straight month and at its steepest decline since August 2023.
Private-sector staffing numbers also fell by their most since November 2020, which S&P said was a result of higher payroll costs and weak demand, with average cost burdens rising by their most in 21 months. Purchasing managers said that average cost burdens increased by their most in 21 months.
“Early PMI survey data for February indicate that business activity remained largely stalled for a fourth successive month, with job losses mounting amid falling sales and rising costs," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
“The lack of growth alongside rising price pressures points to a stagflationary environment which will present a growing dilemma for the Bank of England."
