Steady Expansion in UK Private Sector

The United Kingdom's private sector has maintained its expansion for the 16th consecutive month, as reported by S&P Global. The composite Purchasing Managers' Index (PMI) slightly decreased to 50.5 in February from January's 50.6, indicating a minor slowdown in growth momentum.

Service Sector's Mixed Performance

Despite a 0.2 point increase in the services PMI to 51, the sector faced challenges, including a decline in new business and the most significant reduction in employment since November 2020.

Risks of Stagflation Loom

Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted the service providers' modest increase in business activity but warned of a potential risk of stagflation, given the loss of growth momentum since last autumn.