S&P Global data shows UK services sector PMI at 53.9 in February, down from January’s 54.0 but still signaling expansion. New order momentum weakened amid challenging client conditions in leisure, hospitality, and construction, though backlogs stabilized after years of decline. Domestic demand drove activity, while international orders stalled, per Tim Moore, S&P Global’s Economics Director. Employment cuts persisted for the 17th consecutive month, with hiring freezes and non-replacement of leavers cited as key factors. Input costs rose sharply due to higher food and tech hardware prices, though inflation eased to a four-month low. Output expectations remain upbeat, with 50% of firms anticipating growth via product development and diversification.