03.09.202608:44:13UTC+00UK Private Sector Activity Improves

The S&P Global UK Composite PMI edged up to 52.5 in August 2026 from 52.2 in July, matching the flash estimate and surpassing market expectations of 51.6. Growth was driven by renewed momentum in the services sector (52.5 vs 52.1 in July), which more than offset a slight slowdown in manufacturing (51.7 vs 51.9).

At the aggregate level, new orders rose sharply, with firms citing a rebound in consumer spending and stronger investment sentiment, even as export sales remained weak. Nevertheless, staffing levels continued to decline, nearing two years of uninterrupted monthly reductions, as employers pointed to rising labor costs linked to higher National Insurance contributions.

Input costs for the private sector accelerated, reflecting elevated fuel prices and wage pressures, which in turn pushed output charge inflation higher. Looking ahead, overall business expectations strengthened for a third consecutive month, supported by improving margins since energy prices peaked in June.