UK Service Sector Logs Strong Growth

(RTTNews) - UK service providers registered robust upturn in business activity in February, final survey data from S&P Global revealed Wednesday.

The final services Purchasing Managers' Index dropped marginally to 53.9, as initially estimated, from 54.0 in January.

The survey showed an upturn in overall new work for the third consecutive month, underpinned by domestic demand. New work from abroad was close to stalling in February.

Backlogs of work were also broadly unchanged in February. There was a solid reduction in employment despite a sustained recovery in business activity.

Cost pressures increased in February due to rising employment costs. Although business expectations for the year ahead remained upbeat, the index fell to a three-month low.

The composite output index remained unchanged at 53.7 in February. This was down from the initial estimate of 53.9.