23.09.202608:42:58UTC+00UK Services Activity Slows More than Expected

The S&P Global UK Services PMI slipped to 51.7 in September 2026 from 52.5 in August, coming in below market expectations of 52, according to flash estimates. This latest reading signals a loss of momentum in the service sector, with output growth slowing to a three‑month low.

Firms reported that subdued domestic conditions and heightened geopolitical uncertainty were weighing on activity, although demand for technology-related services continued to offer some support. New business volumes returned to decline as clients faced tighter budgets, and export sales weakened further.

Employment in the sector also fell again in September, reflecting efforts to improve efficiency, rising operating costs, and limited pressure on capacity. On the inflation front, input cost pressures intensified, driven largely by higher fuel prices.

Business confidence among service providers eased slightly, as geopolitical risks clouded the outlook. Even so, a number of firms remained positive about the longer-term prospects, anticipating a recovery in sales over time.