FX.co ★ UK Private-Sector Activity Rises More than Expected

The S&P Global UK Composite PMI increased to 51.1 in October 2025, up from a four-month low of 50.1 in September, surpassing the anticipated figure of 50.6. This improvement was primarily driven by a boost in the services sector activity, which rose to 51.1 from 50.8 in the previous month, while the manufacturing sector experienced its mildest downturn in a year, reaching 49.6 compared to 46.2. Aggregate new orders returned to growth, recording the second-fastest expansion rate in a year, although this was somewhat constrained by a decline in export sales. Concurrently, job cuts diminished, reaching their lowest level since May. Survey respondents frequently cited increased tax burdens from the UK’s National Insurance scheme as a factor for reduced headcounts this year. Meanwhile, input cost inflation decelerated, and heightened price competition resulted in modest increases in output charges. Looking forward, there is a noted improvement in business activity expectations.