UK Private Output Rises Most in 21 Months

The S&P Global UK Composite PMI stood at 53.7 in February 2026, unchanged from January’s 17-month high but slightly below the preliminary estimate of 53.9. The reading signaled a solid expansion in private sector activity, extending the current growth streak to ten months. Manufacturing output rose at its fastest pace since September 2024, partly offsetting a marginal slowdown in services growth. However, employment fell again, marking a 17th consecutive monthly decline. Inflationary pressures eased somewhat, with both input costs and output charges rising more slowly than at the start of the year.

The UK S&P Global Composite PMI rose to 53.9 in February of 2026 from 53.7 in the previous month, ahead of market expectations of 53.3 for the highest reading since April of 2024, according to a preliminary estimate. Output growth rose to a 17-month high for manufacturers (53.6 vs 51.6 in January), while it remained at a historically elevated level for services providers (53.9 vs 54). New work at the aggregate increased at the strongest pace since September 2024, with firms citing improving sales pipelines and new consumer wins despite fragile economic conditions. Despite the higher orders, employment levels decreased further with employers blaming rising labor costs due to increased National Insurance contributions. The higher labor costs were combined with higher commodity prices to maintain input inflation elevated, driving output charge inflation to its highest in ten months. Looking forward, firms still signaled strong confidence in business activity for the next year.

The UK S&P Global Composite PMI rose to 53.7 in January of 2026 from 51.4 in the previous month, revised slightly downward from the preliminary estimate of 53.9 but remaining sharply above the initial market expectations of 51.5. The result reflected the sharpest expansion in the UK private sector output, supported by both the services sector (54 vs 51.4 in December 2025), while that for manufacturers rose markedly to a 17-month high (51.8 vs 50.6). Total new orders received by the private sector rose to a third month in the last four, supported by an improvement in export sales. However, rising labor costs drove private sector job counts to fall at a faster pace. On the price front, input cost inflation slowed compared to the end of the previous year, but improving demand conditions drove output charges to accelerate. Looking forward, business activity expectations improved for a second straight month.