The S&P Global UK Services PMI was revised down to 50.5 in March 2026 from a flash estimate of 51.2, and from 53.9 in February, indicating the slowest expansion in the sector during the current 11‑month growth streak. The slowdown was attributed to heightened geopolitical tensions and rising global economic uncertainty.
While output continued to rise, the increase was only marginal. Total new work declined for the first time since November 2025 and registered its steepest fall in eight months. Export orders also dropped sharply in March, posting their fastest decline since April 2025.
Employment levels fell further, reflecting subdued pressure on operating capacity and efforts by firms to contain mounting payroll costs. Input cost inflation accelerated to an 11‑month high, driven by higher prices for fuel, transportation, and raw materials.
Although business activity expectations remained positive in March, overall sentiment softened compared with January’s 15‑month peak.
