FX.co ★ UK Services Growth at Eight-Month High

The S&P Global UK Services PMI rose to 52.8 in October 2026 from 52.1 in September, coming in slightly below the flash estimate of 53.1. Even so, the latest figure pointed to the fastest expansion in services activity since February, driven by firmer customer demand and stronger order books. Some firms cited higher sales linked to AI-related investment, reduced client risk aversion, and more supportive economic conditions. However, squeezed household budgets and ongoing geopolitical uncertainty continued to restrain overall demand.

Total new business grew at its quickest pace since January, and employment returned to growth for the first time in two years, even as backlogs of work continued to fall. On the price front, input costs increased at their fastest rate in five months, while output price inflation edged down as intense competitive pressures continued to curb firms’ pricing power. Business confidence strengthened as well, rising to its highest level since February.