FX.co ★ UK Services Activity Unexpectedly Strengthens

The S&P Global UK Services PMI rose to 52.8 in August 2026 from 52.1 in July, beating market expectations of 51.8, according to flash estimates. The data signaled a second consecutive month of expansion in the services sector, with growth accelerating to its fastest pace since February amid improving demand conditions. Business activity was reportedly supported by sunny weather and increased technology investment.

Although employment continued to fall, the pace of job losses was only marginal and the weakest since October 2025. On the price front, service providers faced stronger input cost pressures, primarily reflecting higher fuel and transportation costs, as well as rising wages and utility bills. Finally, business confidence strengthened further, underpinned by firmer order books and optimism about a sustained recovery in economic conditions both domestically and abroad.