UK Services Sector Growth Remains Modest

2026-10-05 08:43 By Luisa Carvalho 1 min. read

The S&P Global UK Services PMI was revised slightly higher to 52.1 in September 2026 from a flash estimate of 51.7, slightly below August's 52.5.

The reading signalled moderate growth in the services sector, with new orders rising only slightly and posting their slowest growth in three months.

Geopolitical tensions, tighter consumer budgets and higher borrowing costs weighed on demand, although resilient technology services demand remained a bright spot and client risk aversion eased.

Employment continued to fall, marking two years of job cuts, although the decline eased to its slowest pace since October 2025.

Meanwhile, input-cost inflation accelerated to its fastest pace since June, reflecting higher fuel prices and payroll costs.

This led to the sharpest increase in prices charged since May.

Looking ahead, firms remained optimistic, but confidence eased from August’s six-month high amid economic uncertainty, Middle East worries and weak real estate and construction demand.



News Stream
UK Services Sector Growth Remains Modest
The S&P Global UK Services PMI was revised slightly higher to 52.1 in September 2026 from a flash estimate of 51.7, slightly below August's 52.5. The reading signalled moderate growth in the services sector, with new orders rising only slightly and posting their slowest growth in three months. Geopolitical tensions, tighter consumer budgets and higher borrowing costs weighed on demand, although resilient technology services demand remained a bright spot and client risk aversion eased. Employment continued to fall, marking two years of job cuts, although the decline eased to its slowest pace since October 2025. Meanwhile, input-cost inflation accelerated to its fastest pace since June, reflecting higher fuel prices and payroll costs. This led to the sharpest increase in prices charged since May. Looking ahead, firms remained optimistic, but confidence eased from August’s six-month high amid economic uncertainty, Middle East worries and weak real estate and construction demand.
2026-10-05
UK Services Activity Slows More than Expected
The S&P Global UK Services PMI fell to 51.7 in September 2026 from 52.5 in August, below market forecasts of 52, flash estimates showed. The latest reading pointed to a slower expansion of overall service sector output, with growth hitting a three-month low. Service providers cited weak domestic conditions and geopolitical uncertainty as constraints on activity growth, although demand for technology services provided some support. New business volumes posted a renewed decline amid budget constraints, while export sales fell further. Employment numbers also continued to decrease in September, amid higher operating costs, efficiency gains, and a lack of pressure on business capacity. On the price front, input cost pressures strengthened, mainly on account of fuel prices. Business confidence among service providers eased slightly in September amid rising geopolitical uncertainty, although some firms remained optimistic about the longer-term outlook and a rebound in sales.
2026-09-23
UK Services Activity Expands Modestly in August
The S&P Global UK Services PMI was revised slightly down to 52.5 in August 2026 from a flash estimate of 52.8, marking a modest improvement from July's 52.1. The latest reading signalled a moderate expansion of overall service sector output, the strongest in four months. New orders expanded marginally in August, signalling a modest improvement in demand as business and consumer spending recovered. Export sales remained under pressure, declining for a sixth consecutive month amid subdued European demand and geopolitical uncertainty. Meanwhile, employment fell at the slowest pace since October 2025. Input cost inflation picked up from July’s five-month low amid higher fuel, transport, wage, food and technology costs. Output prices rose sharply and at a faster pace. Business optimism strengthened for the third month running to its highest since February, shrugging off elevated inflation and ongoing uncertainty linked to the Middle East conflict.
2026-09-03