FX.co ★ UK Services Sector Sustains Expansion in February

The S&P Global Flash UK Services PMI slipped slightly to 53.9 in February 2026 from 54.0 in January, but remained above market expectations of 53.5, according to preliminary estimates. The services sector extended its expansion to a tenth consecutive month, with growth broadly in line with January’s five-month high. New business continued to rise, supported by an ongoing recovery in domestic demand despite a still-fragile economic backdrop. External demand picked up only modestly, with several firms reporting muted sales to EU markets. At the same time, employment levels fell again as companies prioritized productivity gains and cost control. On the inflation front, both input costs and output prices rose sharply in February, largely reflecting persistent wage pressures.