Free Trial

Inflationary Pressures From Flash Release Confirmed In Feb Final PMI

UK DATA

The UK services PMI was revised -0.5 points lower vs the flash release at 53.8 (vs 54.3 flash). However, the index remains above levels seen in H2 2023 and has printed above 50 for the last 4 months.

  • The key message appears similar to the flash release though: Labour costs continue to put upward pressure on prices, much like in the Eurozone.
  • BoE-dated OIS continue to shows ~60bp of ’24 cuts, while Gilts also saw a limited reaction.

Key notes from the release:

  • "Higher levels of business activity were supported by a solid increase in new order volumes during February".
  • "Some firms also cited the prospect of lower interest rates as a factor driving a turnaround in customer demand".
  • "Strong cost pressures persisted across the service economy. Overall input price inflation accelerated to its highest since September 2023, primarily driven by higher wage bills".
  • "A number of firms also reported increased costs due to shipping surcharges".
  • "Anecdotal evidence suggested that resilient customer demand had allowed firms to pass on higher business expenses, with many citing upward pressures from rising wages".

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.