- UK Final Services PMI is revised down to 60.5 in February.
- GBP/USD remains below 1.3400 after upbeat UK data.
- The focus is on US jobless claims and the ISM Services PMI ahead of the Russia-Ukraine peace talks.
The UK service sector activity expanded less than expected in Februaryas confirmed on Thursday by the final report of IHS Markit.
The Purchasing Managers Index IHS Markit/CIPS Services PMI, seasonally adjusted, has been revised down to 60.5 points in February vs. 60.8 expected and the preliminary reading of 60.8.
Key points
There are sharper increases in activity and new orders as the Omicron wave fades.
Outlet price inflation reaches a new record.
It sees the biggest increase in employment in four months.
Comments from Andrew Harker, Director of Economics at IHS Markit
“The fall of the Ómicron wave of the COVID-19 pandemic contributed to a rebound in growth in the services sector from the UK in February, with rates of expansion of activity and new businesses that increased sharply. With manufacturing also seeing growth pick up, the UK economy appears to have expanded sharply in the middle of the first quarter of the year.”
However, “inflationary pressures remained acute, with sales prices rising at a new record pace for the second consecutive month. This pass-through of costs to customers will most likely will lead the Bank of England to raise interest rates again at the next MPC meeting in March“.
Source: Fx Street
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