| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 53.9 | 53.9 to 53.9 | 53.7 | 53.7 |
| Services Index | 53.9 | 53.9 to 53.9 | 53.9 | 54.0 |
Highlights
The UK service sector maintained a solid expansion in February, extending its growth streak to ten consecutive months. The UK services PMI remained broadly unchanged at 53.9, indicating sustained momentum supported by gradually improving demand and the release of pent-up spending. Growth continues to be driven primarily by domestic activity, as new export orders were close to stagnation amid subdued economic conditions across Europe.
Notwithstanding this resilience, underlying structural pressures persist. Employment contracted for the seventeenth consecutive month, reflecting ongoing margin compression from elevated cost pressures rather than weakness in demand. Firms increasingly relied on productivity improvements and investment in technology to expand output without increasing headcount, pointing to a shift toward a more efficiency- and capital-intensive operating model. The stabilisation of backlogsafter a prolonged period of declinesuggests that spare capacity is no longer widening, even as hiring restraint remains firmly in place.
Inflationary pressures continue to pose a key challenge. Input costs rose sharply, driven by higher wage bills and supplier price pass-throughs, while output prices increased at one of the fastest rates since early 2025. Overall sentiment remains cautiously optimistic, with positive growth expectations tempered by persistent domestic and global uncertainties. These updates leave the RPI and RPI-P at 3, indicating that economic activity in the UK continues to perform in line with market expectations.
Market Consensus Before Announcement
The consensus sees no revision in the final from the flash at 53.9 for composite and 53.9 for services in the February final.
Definition
The Services Purchasing Managers' Index (PMI) provides an estimate of service sector business activity for the preceding month by using information obtained from a representative sector survey incorporating transport and communication, financial intermediation, business services, personal services, computing and IT and hotels and restaurants. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The data are compiled by the Chartered Institute of Purchasing and Supply (CIPS) and S&P Global.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the ISM non-manufacturing index in the U.S. and the S&P Global PMIs elsewhere, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The S&P Global PMI services data give a detailed look at the services sector, how busy it is and where things are headed. The indexes are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.