FX.co ★ UK Business Activity Growth Hits 6-Month High

The S&P Global UK Composite PMI climbed to 52.0 in March 2025, up from 50.5 in February, surpassing market forecasts of 50.3, as indicated by preliminary data. This suggests only modest growth in the private sector, yet it marks the highest level since September, largely buoyed by the most robust expansion in the service sector since August. In stark contrast, manufacturing output contracted for the fifth month in a row, marking its steepest decline since October 2023. New order volumes exhibited a pronounced divergence, with manufacturers experiencing a significant drop in demand due to increasing global economic uncertainties and the potential imposition of US tariffs, while service providers saw their first rise in new work this year. Furthermore, employment declined for the sixth consecutive month. Input cost inflation continued to ease from January’s nine-month peak, yet the prices charged increased steadily. Despite these developments, business confidence persisted at a muted level, lingering near the 25-month low recorded in January.