Services show steady growth but firms still cutting jobs

GROWTH in the UK's services sector held steady last month but businesses continued to cut jobs in the face of cost pressures and increased technology spending, according to new survey findings.

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Experts cautioned that the escalation of conflict in the Middle East could dampen sentiment in the month ahead.

The S&P Global UK services PMI survey showed a reading of 53.9 in February, down slightly from the 54 recorded in January.

Any reading above 50 means the sector is growing while any reading below signals it is contracting.

February's figure showed activity was relatively steady since January, which was the highest score since August last year.

The latest survey showed that businesses were getting new work coming in thanks to a release of pent-up demand at home, with business and consumer spending picking up pace.