U.K. February services PMI improved to 43.2 from 42.5, better than our survey median estimate for 42.0, as well as our own above-median 42.5 reading. Data hence suggest that the pace of deterioration for the sector has slowed. Though the sector is still contracting, this was the third monthly increase since November’s record low and the employment index was lifted in February from the previous month’s record low. The outlook for the next year was the strongest in five months. There might hence be some indication that aggressive BoE rate cuts and government fiscal stimulus are having some impact, and that service providers are starting to see the light at the end of the tunnel.