LONDON, Feb 22 Reuters Britain39;s economy kept up its early 2024 momentum with a survey showing strong growth for services firms and business optimism at a twoyear high, but inflation pressures are likely to keep the Bank of England wary about cutting borrowing costs.

Adding to signs that Britain39;s shallow recession of last year is likely to be shortlived, the preliminary February SP GlobalCIPS UK Composite Purchasing Managers39; Index PMI, which spans services and manufacturing firms, rose to 53.3, the highest in nine months, from January39;s 52.9.

Economists polled by Reuters had forecast no change from January39;s reading.

But there were potential areas for concern for the BoE in the survey including strong growth in wages among services firms and Red Sea tensions hitting factory supplies, pushing a measure of price increases by businesses to its highest since July.

Among services firms, the PMI39;s headline measure held at 54.3. Manufacturing remained below the nogrowth threshold of 50.0 but edged up to 47.1 from 47.0 in January.

Chris Williamson, SP Global Market Intelligence39;s Chief Business Economist, said the survey pointed to the economy growing by 0.2 or 0.3 in the first three months of 2024 after contracting in the third and fourth quarters of last year.

That is likely to be a relief for Prime Minister Rishi Sunak who has had to endure taunts of Rishi39;s recession from the opposition Labour Party which is riding high in opinion polls ahead of a…