UK Services Activity Expands Modestly in August

The S&P Global UK Services PMI was revised slightly down to 52.5 in August 2026 from a flash estimate of 52.8, marking a modest improvement from July’s 52.1. The latest reading signalled a moderate expansion of overall service sector output, the strongest in four months. New orders expanded marginally in August, signalling a modest improvement in demand as business and consumer spending recovered. Export sales remained under pressure, declining for a sixth consecutive month amid subdued European demand and geopolitical uncertainty. Meanwhile, employment fell at the slowest pace since October 2025. Input cost inflation picked up from July’s five-month low amid higher fuel, transport, wage, food and technology costs. Output prices rose sharply and at a faster pace. Business optimism strengthened for the third month running to its highest since February, shrugging off elevated inflation and ongoing uncertainty linked to the Middle East conflict.






