• Prior 48.7
  • Manufacturing PMI 49.2 vs 47.5 expected
  • Prior 47.0
  • Composite PMI 53.0 vs 49.0 expected
  • Prior 48.5

That's a big beat on estimates with both manufacturing and services activity improving markedly to seven and eight month highs respectively. Overall, the UK economy is also seen moving back into growth territory, surprisingly, and that has seen GBP/USD jump up from 1.2000 to 1.2040 on the day.


S&P Global notes that:

“Much better than anticipated PMI data for February indicate encouraging resilience of the economy in the face of headwinds which include rising interest rates, the ongoing cost of living crisis, labour shortages and strikes.

“While many companies continue to report tough operating conditions, especially in the manufacturing sector, the broader business mood has been buoyed by signs of inflation peaking, supply chains improving and recession risks easing. The stress created by last autumn's mini budget is also continuing to work its way out of the financial system.

“However, while the data suggest that near-term recession odds have fallen considerably, elevated inflation pressures clearly remain a concern, especially in the service sector. As such, the resilience of the economy and the stickiness of the survey's inflation gauges add to the likelihood of the Bank of England tightening policy further, and potentially more aggressively, which may dampen future growth expectations and suggests that the possibility of recession later in the year should not be ruled out.”