FX.co ★ UK Services Sector Growth Slows to 7-Month Low

The S&P Global Flash UK Services PMI declined to 50.5 in November 2025 from 52.3 in October, falling short of market expectations of 52, according to a preliminary report. This represents the seventh consecutive month of growth for the sector, although the expansion was marginal and the slowest within this period of growth. New business experienced its first decline since July as clients exercised caution in anticipation of the November Budget. Additionally, staffing levels saw a significant reduction compared to the previous survey period. Reports indicate that many companies opted not to replace departing employees, choosing instead to allocate resources towards technology investments, in response to diminished demand and uncertainty surrounding policy decisions. Higher salary pressures were also a concern. In terms of pricing, output inflation eased considerably due to competitive pressures, despite the continued rise in costs. Lastly, expectations for business activity decreased from October's 12-month peak, as concerns persisted regarding tepid consumer demand, ongoing economic and political uncertainties, and escalating costs.