British business growth hits multi-year high despite ongoing job cuts in service sector
British business activity reached a multi-year high this month as manufacturing surged. However service firms continue to cut jobs amid rising tax burdens.
The preliminary S&P Global UK 
GB Composite PMI for February rose to 53.9, extending a second month of rebound in business activity and indicating expansion above the 50 threshold. This result, the highest since April 2024, signals stronger near-term economic activity consistent with an estimated 0.3% rise in Q1 2026 GDP.
GB Composite PMI for February rose to 53.9, extending a second month of rebound in business activity and indicating expansion above the 50 threshold. This result, the highest since April 2024, signals stronger near-term economic activity consistent with an estimated 0.3% rise in Q1 2026 GDP.Data from S&P Global showed that the manufacturing sector hit an 18-month high during the month. However, the report also highlighted signs of labour-market weakness, specifically noting that the services sector has seen job cuts. These reductions in staffing levels among UK businesses are linked to higher social security payments following a policy change introduced in April 2025.
