FX.co ★ UK Services Sector Growth Remains Sluggish

The S&P Global Flash UK Services PMI climbed to 51.1 in October 2025, up from 50.8 in September, closely aligning with market expectations of 51, based on preliminary data. Although output continued to register growth, it did so marginally, representing the second-lowest increase since May. Many firms attributed this modest growth to restrained consumer confidence and the postponement of business decisions in anticipation of the November Budget. Meanwhile, there was a moderation in the reduction of staffing levels. On the pricing front, the pace of input cost inflation eased, with output charges also rising less sharply. Looking ahead, expectations for business activity in the coming year improved slightly, buoyed by increasing optimism, early indicators of market recovery, and strategic plans for new product launches and marketing efforts.