FX.co ★ UK Services Sector Continues Expansion in December

In December 2025, the S&P Global Flash UK Services PMI climbed to 52.1, up from 51.3 in November and surpassing market expectations of 51.6, according to preliminary estimates. This increase represented a two-month peak and indicated the eighth consecutive month of growth for the sector. The acceleration in business activity was fueled by the most significant rise in new orders seen in 14 months and a recovery in international demand, breaking a 13-month period of decline. However, employment continued to decrease for the 15th straight month due to ongoing cost pressures. Input costs surged at their fastest rate since May, which in turn drove prices to their highest point since August. Notably, backlogs of work increased for the first time since February 2023. Looking forward, business confidence reached its second-highest level since October 2024, indicating a cautiously optimistic sentiment among firms despite continued cost and staffing challenges.