FX.co ★ UK Services PMI Revised Lower to 5-Month Low

The S&P Global UK Services PMI experienced a decline to 50.8 in September 2025, dropping from a high of 54.2 in August—a level not seen for over a year. This revision is down from the preliminary figure of 51.9 and represents the slowest expansion pace since April. The deceleration is attributed to subdued economic conditions and increased market uncertainty affecting output growth. Consequently, new business increased only marginally. Furthermore, hiring activity was cautious across the sector, with many service providers reporting reduced staff numbers due to not replacing voluntary departures, signifying a conservative approach to workforce growth. On the cost front, input cost inflation eased to its second-lowest level in 2025, while the rate of output price increase slowed to its most modest pace since June amid intensified competition for new business. Despite these challenges, business confidence remained in positive territory in September. However, optimism declined compared to August and was significantly below the averages seen before the pandemic.