UK Flash Composite PMI Unexpectedly Surges to 52.0, Defying Recession Fears

The UK flash Composite PMI unexpectedly jumped to 52.0 in February 2025 (from 50.6), beating the 49.8 forecast and signaling renewed expansion in services and manufacturing. Services rose to 52.3 and manufacturing to 51.8, with new orders and employment improving. Markets reacted positively: the FTSE 100 rallied (up ~0.6% to 7,890), GBP/USD strengthened to ~1.2680 and gilt yields ticked higher as traders cut the odds of an imminent BoE rate cut. Analysts said the data reduces near-term easing pressure on the Bank of England and supports a modest growth outlook, though risks (inflation, geopolitics, labor shortages) mean the recovery could be fragile.