- Prior 54.1
- Manufacturing PMI 57.3 vs 57.5 expected
- Prior 57.3
- Composite PMI 60.2
- Prior 54.2
That's the fastest growth in economic activity in eight months as the services sector rebounds strongly as the omicron impact proves short-lived. The jump is helped by a strong recovery in consumer spending on travel, leisure and entertainment. That said, price pressures remain an issue with input cost inflation accelerating again in February - coming close to breach the survey-record high in November last year. Markit notes that:
“The latest PMI surveys indicate a resurgent economy in February, as business activity leapt as COVID-19 containment measures were relaxed.
"With the PMI’s gauge of output growth accelerating markedly in February and cost pressures intensifying to the second highest on record, the odds of an increasingly aggressive policy tightening have shortened, with a third back-to-back rate rise looking increasingly inevitable in March.
"However, the indications of a growing plight for manufacturers will need to be watched, and the service sector’s new business index will need to be monitored for signs of the demand revival losing steam. Given the rising cost of living, higher energy prices and increased uncertainty caused by the escalating crisis in Ukraine, downside risks to the demand outlook have risen.”