UK Private Sector Activity Revised Lower

The S&P Global UK Composite PMI rose to 52.5 in August of 2026 from 52.2 in the previous month, the same as the flash estimate and above the initial market expectations of 51.6. The growth was bolstered by fresh traction for the services providing sector (52.5 vs 52.1 in July), which offset a slowdown in the manufacturing sector (51.7 vs 51.9). New orders at the aggregate level improved sharply with businesses reporting a recovery in consumer spending and greater investment sentiment, even though export sales remained subdued. Still, staffing numbers dropped further to approach nearly two years of consecutive monthly declines, with employers continuing to cite surging labor costs due to new National Insurance contributions. Input costs for the private sector accelerated due to high fuel prices and wages, driving output charge inflation to rebound. Looking ahead, business expectations at the aggregate improved for a third month on improving margins since energy prices peaked in June.

The S&P Global UK Composite PMI rose to 52.5 in August from 52.2 in the previous month, firmly above market expectations that it would ease to 51.6, according to a flash estimate. The growth was bolstered by fresh traction for the services providing sector (52.8 vs 52.1 in July), which offset a slowdown in the manufacturing sector (51.2 vs 52.9). New orders at the aggregate level improved to the most since February, before the war in the Middle East started, driven by resilience in services. Still, staffing numbers dropped further to approach nearly two years of consecutive monthly declines, with employers continuing to cite surging labor costs due to new National Insurance contributions. Input costs for the private sector accelerated due to high fuel prices and wages, driving output charge inflation to rebound. Looking ahead, business expectations at the aggregate improved for a third month on improving margins since energy prices peaked in June.

The S&P Global UK Composite PMI rose to 52.2 in July 2026 from 49.3 in June, broadly matching the preliminary estimate of 52.1 and signaling the strongest expansion in private sector activity since April. The improvement was driven by renewed growth in services and the fastest increase in manufacturing output since September 2024. New business rose for the first time in three months, although employment continued to decline amid ongoing job losses in the services sector. Meanwhile, input cost inflation eased across both manufacturing and services, while output price inflation slowed to a five-month low.