The UK economy bounced back in February, with business activity the strongest since June 2021, led by a recovery in consumer spending on travel, leisure and entertainment, the latest snapshot from IHS Markit shows.
The composite purchasing managers’ index (PMI), a monthly survey conducted by IHS Markit and the Chartered Institute of Procurement & Supply, hit an eight-month high of 60.2 in February, up from 54.2 in January and far higher than the 50 mark that separates growth from contraction. Economists had predicted it would reach 55.
It said services firms benefited from a loosening of pandemic measures.
The closely watched survey also showed high inflation persisted in February, as higher wages, energy bills and raw material costs all contributed to firms’ rising operating expenses.
Markit said: “The overall rate of input cost inflation was the steepest since last November and the second-highest since the index began in January 1998.
“This resulted in another sharp increase in average prices charged by private sector firms, although the latest rise was softer than at the start of the year.”
