Key facts
- UK services sector activity grew for the second consecutive month in August.
- The S&P Global UK Services PMI increased to 52.5 in August.
- More UK firms reported rising prices charged and higher input costs.
- Optimism among UK services firms reached its highest level since February.
- The UK composite PMI, including manufacturing, rose to 52.5.
Activity in the UK's services sector grew for the second consecutive month in August, with business confidence rising to its highest level since February. The S&P Global UK Services Purchasing Managers' Index (PMI) increased to 52.5 from 52.1 in July, indicating accelerating growth. This resilience in the economy comes despite concerns about the Middle East conflict and inflation.
More firms reported increasing the prices they charge and higher input prices, a development that the Bank of England is closely monitoring to gauge potential inflationary pressures from energy price surges. The survey's index of new work eased slightly to 50.7, but employment decreased at the slowest pace since October 2025, supported by improved sales pipelines.
The composite PMI, which includes the manufacturing sector, also rose to 52.5 from 52.2, reaching its highest point since April. Analysts suggest that the improving economic conditions and persistent price pressures could influence the Bank of England's monetary policy decisions.