The latest Lloyds UK Sector Tracker, compiled using exclusive PMI survey data from around 1,300 private sector companies, reveals that more sectors reported “month-on-month growth in February.”
As stated in the report from UK‘s Lloyds Bank, four sectors reportedly saw their “output rise (up from one in January) – the most since November 2024.”
Software & IT services grew at the “fastest pace (58.7), and the tourism and recreation sector – which includes pubs, hotels and restaurants – expanded for the first time in ten months (50.4).”
Meanwhile, the data reportedly shows that month-on-month, demand – as measured by new orders – “remained broadly similar, with two sectors reporting a rise.”
As mentioned in the report from Lloyds Bank, software services “saw demand growth for the 24th month in a row. 12 sectors saw demand, as measured by new orders, fall.”
As noted in the update from Lloyds Bank, businesses focus “on cost cutting, as cost pressures remain In February, most sectors reported a month-on-month increase in cost pressures (nine).”
Against this background, all seven manufacturing sectors “monitored by the Tracker cut back on their purchases of raw materials for a third month in a row, while the number of businesses mentioning that headcounts had been lowered – as part of efforts to manage costs – marginally increased to 3.3 times the long-run average (vs. 3.06 in January and 3.68 in December 2024).”
For the “first” time in seven months, every sector has reportedly increased the prices charged to customers, “although seven sectors did so at a slower rate than in January.”
Nikesh Sawjani, Senior UK Economist at Lloyds, said:
“The month-on-month rise in the number of growing sectors is movement in the right direction, as it demonstrates the work that firms are doing to counter the challenges they continue to face. However, February marked the sixth month in a row where more than half of the monitored sectors saw output contract. Although uncertainty remains within sectors, businesses are no longer absorbing as much impact – instead, they are taking steps to protect their margins.”
