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3/3, 10:30 AM (Source: TeleTrader)
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UK services industry activity down slightly in February

United Kingdom's private sector activity decreased slightly in February, with the UK Composite Output Index jumping 8.4 points to land at 49.6, IHS Markit's data published on Wednesday showed. Meanwhile, the seasonally adjusted Services PMI Business Activity Index rose 10 points, marking the slowest decrease in services activity since November 2020.

New business and orders fell marginally except for exports, which were down significantly. Survey participants blamed the coronavirus pandemic and Brexit-related difficulties for the subdued demand. Reduced business volume reduced pressure on companies, prompting the fastest backlog decline since June. Employment in the sector was down, albeit at the slowest pace since last March, while cost burdens rose sharply.

"UK service sector activity was relatively stable in February and so it appears that the third national lockdown has seen limited spillovers to parts of the economy beyond the scope of government mandated closures. While customer-facing businesses continued to report severe constraints on activity due to the pandemic, there were signs of growth in technology and some business services after a disappointing start to 2021," Economics Director at IHS Markit Tim Moore said.

Breaking the News / MD