Chris Williamson, chief business economist at S&P Global Market Intelligence, said the early data for February indicates that “business activity remained largely stalled for a fourth successive month, with job losses mounting amid falling sales and rising costs”.
Input cost inflation increased in February for the fourth month in a row, according to the survey, which businesses largely linked to higher salary payments and the impact of suppliers seeking to pass on upcoming increases to employer national insurance contributions.
Mr Williamson added: “A key factor behind the upturn in inflationary pressures is the growing number of firms reporting the need to raise prices in order to help offset the impending rise in staff costs associated with the national insurance hike and uplift to the minimum wage announced in the autumn Budget.
The headline S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 50.5 for February, down slightly from January’s reading of 50.6.
It follows official figures on Wednesday showing the rate of Consumer Prices Index (CPI) inflation increased to 3% in January, higher than economists’ expectations for the month.
