03.09.202508:45:58UTC+00UK Services Sector Growth Expands More than Initially Thought

The S&P Global UK Services PMI was revised upward to 54.2 in August 2025 from an initial estimate of 53.6, indicating an acceleration from 51.8 in July. This marks the most robust reading since April 2024, highlighting strong output growth within the sector following a relatively modest expansion in the second quarter of 2025. Notably, new business surged at its fastest rate since September 2024, bolstered by increased domestic and international demand. Nonetheless, employment levels continued to fall, extending the trend of workforce reductions to eleven consecutive months—this is the longest period of decline outside the pandemic era since the downturn from 2008 to 2010. In terms of inflation, input prices rose significantly, hitting a three-month peak in August, while output charges reached their highest point since April. Looking forward, business sentiment improved markedly, with 49% of respondents anticipating higher activity in the coming year, an increase from 44% in July, whereas only 14% foresee a decline.