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UK Services PMI Rises to 52.3, Outlook at Year High as Costs Cool

The report signals softer price pressures plus firmer home demand ahead of near-term rate and budget decisions.

Overview

  • The S&P Global UK Services PMI rose to 52.3 in October from 50.8 in September, beating the 51.1 flash estimate and economist forecasts.
  • The composite PMI climbed to 52.2 from 50.1, helped by manufacturing posting its strongest reading in a year.
  • Firms reported the most upbeat 12‑month expectations since October 2024, with stronger order books led by domestic clients as overseas new work fell again.
  • Input cost inflation eased to its weakest since November 2024 and prices charged increased at the slowest pace since June, while job cutting slowed markedly.
  • The Bank of England is monitoring services price pressures before its rate decision this week, and many companies delayed major spending decisions ahead of Rachel Reeves’s November 26 Budget.