The S&P Global UK Services PMI was revised up slightly to 52.1 in September 2026, from a flash estimate of 51.7, but remained below August’s 52.5. The latest reading indicated moderate growth in the services sector, as new orders rose only marginally and recorded their slowest increase in three months. Demand was constrained by geopolitical tensions, tighter household budgets and higher borrowing costs. However, resilient demand for technology services provided support, and client risk aversion showed signs of easing.
Employment continued to decline, extending a two-year period of job cuts, though the pace of reduction slowed to its weakest since October 2025. At the same time, input cost inflation accelerated to its fastest rate since June, driven by higher fuel prices and rising payroll expenses. In turn, firms registered the sharpest increase in output charges since May.
Looking ahead, businesses remained optimistic about future activity, but confidence slipped from August’s six-month high. Sentiment was dampened by ongoing economic uncertainty, concerns over the Middle East, and subdued demand in the real estate and construction sectors.
