FX.co ★ UK Composite PMI Falls from 1-Year High

The UK S&P Global Composite PMI decreased to 51 in September 2025, down from the previous month's one-year high of 53.5, falling short of market expectations of 53. This decline signals the slowest expansion rate in private sector activity since May, based on preliminary estimates. The slowdown was evident across both services providers, which reduced from 54.2 in August to 51.9, and manufacturing, experiencing a deeper contraction, declining from 47 to 46.2. Overall, new orders showed a slight increase, despite sluggish export sales to the US and EU, as companies indicated a reluctance from clients to spend, forcing reliance on existing backlogs to maintain production levels. Meanwhile, costs surged notably due to heightened wage pressures linked to increased National Insurance contributions, compelling firms to raise their prices. As a result, employment figures experienced a decline for the 11th consecutive month. Looking forward, businesses maintained a positive outlook on growth, though the optimism was less pronounced than in the previous month.