‘Fading recession fears’ boost optimism as services sector bounced back to growth in February

The S&P Global/CIPS UK services PMI survey showed a reading of 53.5 in February, up from 48.7 in January and slightly ahead of market expectations.

Any score above 50 is considered growth while a reading below indicates the economy is shrinking.

It marks the first time since August that business activity and incoming new work both expanded.

Tim Moore, economics director at S&P Global Market Intelligence, which compiles the survey, said: “UK service providers moved back into expansion mode in February as fading recession fears and improving business confidence resulted in the strongest rise in new orders since May 2022.

“However, elevated borrowing costs and stretched household finances remained constraints on growth.

“Service providers appear confident that demand remains sufficiently resilient to pass on higher costs to clients.

“The latest survey indicated that business activity expectations rebounded to highest since March 2022, helped by reduced political uncertainty, an improving global economic outlook, and hopes that peak interest rates are on the horizon.”

Read more at City A.M.