UK Economic Recovery Continues Amid Service Sector Job Cuts

The latest PMI survey indicates that the recovery of UK businesses has persisted into its second month since early 2026. According to Jin10, the service sector is experiencing significant job cuts, partly due to higher taxes imposed by the Labour government. The preliminary composite PMI for February rose to 53.9 from January's 53.7, marking the highest level since April 2024. Chris Williamson, Chief Business Economist at S&P Global, stated, "The preliminary Purchasing Managers' Index data for February further suggests an encouraging start to the year for the UK economy." He added that the Bank of England policymakers might feel encouraged by the signs of economic growth. However, the relatively moderate price pressures and ongoing concerns about labor market weakness are likely to prompt calls for further interest rate cuts.