UK Private Sector Growth Accelerates To Near 2-Year High

(RTTNews) - UK private sector rebounded the most in nearly two years in February as new orders registered a robust upturn, flash survey results from S&P Global revealed Friday.

The flash composite output index registered 53.9 in February, up from 53.7 in January, to signal the fastest rise in private sector activity since April 2024.

The improvement was driven by a sharper expansion of manufacturing production. Meanwhile, services output growth eased since January.

"The survey data so far this year are consistent with GDP rising by just over 0.3% in the first quarter if this performance is sustained into March," S&P Global Market Intelligence Chief Business Economist Chris Williamson added.

The services Purchasing Managers' Index dropped slightly to 53.9 from 54.0 in the prior month. Meanwhile, the factory PMI hit an 18-month high of 52.0, up from 51.8 in January.

The survey showed that higher levels of business activity were attributed to a sustained recovery in domestic and export demand. New orders rose the most since September 2024.

However, employment remained a weak spot as staffing decreased at a solid pace in February. Despite an increase in new work, there was a lack of pressure on business capacity. Data showed that unfinished business decreased in each month since May 2023.

Regarding prices, input price inflation eased to a three-month low due to another steep rise in business expenses. However, output charges rose the most since April 2025.

There was a strong degree of confidence regarding the outlook for business activity in the year ahead. Positivity mainly reflected signs of a turnaround in customer demand and hopes of a broader upturn in market conditions.