FX.co ★ UK Business Activity Grows the Most in 8 Months

The S&P Global UK Composite PMI rose to 52.9 in October 2026 from 52.0 in September, coming in slightly below the flash estimate of 53.1 but still reaching its highest reading since February. Growth was underpinned by stronger manufacturing activity, while the services sector also performed solidly, posting its fastest increase in output volumes since September 2024. New business expanded at the quickest pace in nine months, supported by a renewed rise in export sales. Business activity expectations strengthened as well, reflecting reduced risk aversion and greater optimism regarding near-term customer demand. This improved sentiment contributed to a marginal increase in private-sector employment—the first in 25 months—driven by renewed hiring in services. However, inflationary pressures intensified, with input costs rising for a third consecutive month and at their fastest rate since June. Companies in both manufacturing and services pointed to higher fuel and transportation costs as key factors.