Economist: Domestic demand in the UK service sector is steadily recovering, business activity approaches a five-month high

Golden Ten Data reported on March 4 that Tim Moore, Director of Economics at S&P Global Market Intelligence, stated: "Business activity in the UK services sector continued to recover in February, with growth remaining close to the five-month high reached at the beginning of 2026. Survey respondents mentioned an increase in new business intake and improvements in sales channels. This was mainly attributed to the growth in business and consumer spending, especially in the domestic market. However, export orders performed relatively weakly, with the pace of expansion dropping to a three-month low. Despite the ongoing recovery in business activity, February's data showed a significant reduction in employment numbers. Layoffs reflect that companies are continuously striving to improve productivity and alleviate sharply rising input costs. Rising wage costs are widely regarded as the main reason for the sustained strong overall input cost inflation. In addition, food prices and technology costs also increased in February. This prompted service providers to sharply raise their charges again, with the inflation rate remaining basically unchanged compared to the five-month high reached in January."