FX.co ★ UK Composite PMI Rises in January

In January 2026, the UK's S&P Global Composite PMI increased to 53.9, up from 51.4 the previous month, surpassing market predictions of 51.5. This marks the most significant expansion in UK private-sector activity since April 2024, as per preliminary data. The services sector saw a robust rise in business activity, climbing to 54.3 from 51.4 in December 2025, while the manufacturing sector experienced a notable increase, reaching a 17-month high of 51.6 from 50.6. Total new orders in the private sector saw growth for the third time in four months, driven by enhanced export sales. However, despite a rebound in order volumes, firms reported a decline in employment figures due to escalating payroll expenses and subdued economic conditions, particularly impacting service providers. This trend aligns with patterns observed in preceding quarters. Consequently, input costs rose at their fastest pace in seven months, prompting companies to increase output charges to safeguard their profit margins. Anticipations for business activity have improved for the second consecutive month.