FX.co ★ UK Services Activity Growth at 6-Month Low

The S&P Global UK Services PMI slipped to 51.2 in March 2026 from 53.9 in February, coming in well below market expectations for a modest slowdown to 53. This preliminary reading indicates the weakest pace of expansion since September of the previous year.

Growth in new business for service providers softened, weighed down by the sharpest drop in new orders from abroad in nearly a year. Overseas clients frequently cited the postponement of projects in the Middle East and reduced international travel as key reasons for cutting back.

At the same time, firms reported a steep rise in average input costs, partly linked to disrupted shipping routes caused by the conflict in the Middle East. The combination of tighter margins and weaker growth in new work prompted companies to slow their hiring.

Ongoing geopolitical tensions related to the war further dampened confidence, leaving service providers less optimistic about the outlook.