FX.co ★ UK Services Activity Stays Firmly in Expansion Territory

The S&P Global UK Services PMI was confirmed at 53.9 in February 2026, just under January’s five‑month high of 54. Growth was underpinned by gradually improving client confidence and the release of pent‑up demand, although conditions remained difficult in sectors such as leisure, hospitality, and construction. New business expanded for a third consecutive month, driven primarily by domestic demand, while export growth almost stalled amid persistent weakness in European markets.

Backlogs of work were broadly unchanged, as higher new orders were largely offset by productivity gains and increased investment in technology, which reduced the need for additional staff. Employment declined for the seventeenth month in a row, reflecting hiring freezes and ongoing cost pressures. Input costs rose sharply, mainly due to higher wages and supplier prices, and companies responded with robust increases in their own selling prices. Although optimism eased slightly, around half of surveyed firms still expect output to rise over the coming year.