FX.co ★ UK Services Sector Growth Revised, But Remains Sluggish

In November 2025, the S&P Global UK Services PMI was adjusted upwards to 51.3, slightly above the preliminary estimate of 50.5 but still falling short of October's figure of 52.3. This modest increase suggests a deceleration in the UK's service sector activity, impacted by weakening demand domestically and internationally. Survey respondents highlighted several concerns including fragile client confidence, heightened risk aversion, and uncertainty surrounding the Budget, compounded by challenging global economic conditions, which together are dampening business momentum. Consequently, organizations reduced workforce levels at the highest rate seen since February. In terms of pricing, input cost inflation saw an uptick in November, primarily influenced by rising salary expenses. However, the pace at which prices were passed on to customers grew at its slowest in nearly five years amid mounting competitive pressure. Service providers generally maintain a positive outlook on growth prospects, yet confidence has waned compared to October and remains beneath the trend observed post-pandemic.