The UK private sector output contracted only marginally in February reflecting a near-stabilization in services activity amid continuing recovery in manufacturing, a closely watched survey showed on Friday. <\/p>\n
The IHS Markit\/Chartered Institute of Procurement & Supply flash composite output index climbed more-than-expected to 49.8 in February from 41.2 in January. <\/p>\n
The score was forecast to rise to 42.2. The score was close to the 50.0 no-change threshold. <\/p>\n
Service sector activity remained severely impacted by the Covid-19 pandemic in February. Nonetheless, the services Purchasing Managers’ Index advanced to 49.7 from 39.5 in the previous month. The expected score was 41.0.<\/p>\n
The reading signaled the softest rate of decline since the current phase of contraction began in November 2020.<\/p>\n
Meanwhile, the manufacturing PMI came in at 54.9, up from 54.1 in the prior month and above the forecast of 53.2. <\/p>\n
The improvement in manufacturing was driven by a return to new order growth. Meanwhile, slightly slower rates of output and employment growth weighed on the headline PMI in February. <\/p>\n
Manufacturing companies often cited severe supply chain disruptions as a factor holding back production volumes.<\/p>\n