UK private sector activity rises in February despite ongoing job losses: S&P Global

Group 1 - The UK private sector output expanded in February, with the Flash UK PMI Composite Output Index rising to 53.9, marking a 22-month high [2] - Manufacturing output strengthened to 53.6, a 17-month high, while services output eased slightly to 53.9, a 2-month low [2] - New orders increased for the third consecutive month, with manufacturers experiencing the fastest rise in export orders in four-and-a-half years [3] Group 2 - Employment declined for the 17th consecutive month, particularly in the service sector, due to redundancies, hiring freezes, and investments in technology [3][6] - Input costs remained elevated, although inflation eased to a three-month low, while output price inflation accelerated, especially in services [4] - The early PMI data for February suggests a potential GDP rise of just over 0.3% in the first quarter if the current performance is sustained [5] Group 3 - Companies are focused on boosting productivity to cut costs, leading to continued job losses despite higher demand for goods and services [6] - Bank of England policymakers may be encouraged by signs of stronger economic growth, but ongoing labor market weakness could lead to calls for further rate cuts [7]