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FILTERED RESULTS
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UK Services Sector Sees Moderate Growth Amid Rising Costs
The final services Purchasing Managers' Index (PMI) for the United Kingdom in September was recorded at 52.1, slightly above the preliminary estimate of 51.7 but down from 52.5 in August. This marks the third consecutive month of growth in the service sector, although the pace of expansion has slowed compared to the previous month, according to S&P Global Market Intelligence.
Tim Moore, Economics Director at S&P Global, noted that while there was moderate output growth, subdued demand and rising inflationary pressures have led to weaker business activity expectations for the upcoming year. New order intakes increased only marginally, reflecting the slowest growth rate in three months, with factors such as geopolitical tensions, consumer budget constraints, and higher borrowing costs impacting sales.
Despite these challenges, there was resilient demand for technology services, which has been a positive aspect for the sector. Employment numbers in the service sector have seen continuous cutbacks over the past two years, but recent business requirements have slowed the rate of job losses, marking the slowest decline since October 2025. However, surging fuel prices, driven by ongoing conflicts in the Middle East, have resulted in the sharpest increase in input costs since June, leading to a rise in prices charged by service sector companies.
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Source: KLEA News