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UK services PMI rises to four-month high as costs reaccelerate
The PMI Composite also climbed to 52.5, while services employment fell for a 23rd consecutive month and input-cost inflation accelerated again in August.
UK services activity improved in August, with a UK PMI Services reading rising from 52.1 to 52.5, the highest level since April, according to data cited by Action Forex.
The survey showed new business increasing for a second straight month as firms reported improving business and consumer spending and firmer investment sentiment. Domestic demand drove the improvement, but export sales fell for a sixth consecutive month amid subdued European demand and geopolitical uncertainty, Action Forex reported.
The UK PMI Composite also moved up from 52.2 to 52.5, its highest since April, as faster services growth offset softer manufacturing output growth.
While the report pointed to a firmer growth backdrop heading deeper into Q3, it noted that labor conditions remained weak, with services employment declining for a 23rd consecutive month, even as the pace of job losses eased to the weakest since October 2025. Firms continued to cite high costs and excess capacity, and Action Forex said services input-cost inflation accelerated from July’s five-month low as fuel, transport, wages, food, and technology costs increased.