The UK S&P Global Composite PMI edged up to 53.9 in February 2026 from 53.7 in January, beating market expectations of 53.3 and marking the highest reading since April 2024, according to a preliminary estimate. Output growth for manufacturers rose to a 17‑month high (53.6 vs. 51.6 in January), while activity in the services sector remained at a historically strong level (53.9 vs. 54.0).
New business at the aggregate level increased at its fastest pace since September 2024, with firms reporting stronger sales pipelines and new consumer wins despite fragile economic conditions. However, even as orders rose, employment continued to decline, with employers attributing job cuts to higher labor costs linked to increased National Insurance contributions.
Elevated labor costs, together with higher commodity prices, kept input inflation at a high level and pushed output charge inflation to its highest rate in ten months. Looking ahead, firms continued to report strong confidence in business activity over the coming year.
