New UK business increased at sharpest pace for three months...

The UK service sector continued to expand at a marked pace during February, supported by another sharp rise in volumes of incoming new business, according to the latest Markit/CIPS UK Purchasing Manager Index.

According to the Markit/CIPS UK services PMI survey "The UK service sector continued to expand at a marked pace during February, supported by another sharp rise in volumes of incoming new business. Faced with higher backlogs and mild capacity pressures, companies recruited additional staff, with the rate of expansion the second fastest in the survey history

On the price front, average input cost inflation strengthened from January’s recent low amid reports of suppliers being willing to increase their prices and higher wages being paid. In response, output charges were increased at a modest pace.

Companies overwhelmingly commented that the latest increase in activity was the result of a rise in new business amid evidence of a pick-up in general market conditions."

 Key Points:
- New business increased at sharpest pace for three months
- Employment rises at second-fastest rate in survey history
- Input and output prices both increase at sharper rates

See more about the latest Markit/CIPS UK Purchasing Manager Index.