FX.co ★ UK Business Activity Growth Eases to Six-Month Low

The S&P Global UK Composite PMI slipped to 51.0 in March 2026, down from 53.7 in February and below market expectations of 52.9, according to preliminary estimates. This reading signals the weakest expansion in private sector output since September 2025, as activity softened across both services and manufacturing.

New business inflows fell for the first time in four months, with survey respondents linking the downturn to waning confidence amid the conflict in the Middle East, rising inflation, and expectations of higher borrowing costs. Employment declined at a faster rate, while overall business sentiment dropped to a nine‑month low.

On the cost side, input price inflation accelerated to its highest level since February 2023. Manufacturers reported the sharpest rise in input costs since October 2022, alongside the steepest month‑on‑month acceleration in cost pressures since October 1992, shortly after the UK’s Black Wednesday. Output charges were also raised more aggressively, further amplifying inflationary pressures.