UK service sector firms remained in expansion mode during February, but growth momentum eased further from the 17-month peak seen at the end of 2016. The slowdown mainly reflected a softer pace of new business growth, which some respondents linked to more cautious spending among consumers. Business confidence nonetheless remained strong, with service providers indicating that optimism was little-changed from the post-referendum high recorded at the start of this year.

At 53.3 in February, the headline seasonally adjusted Markit/CIPS UK Services PMI Business Activity Index was down from 54.5 in January but still well above the 50.0 threshold that separates growth from contraction.