The latest UK flash PMI data offered a glimmer of optimism for the economy, with Manufacturing jumping from 46.2 to 49.6 in October — its highest level in 12 months. Services rose from 50.8 to 51.1, lifting the Composite index from 50.1 to 51.1. The survey suggests business conditions are slowly improving after a soft September, marking the first sign of renewed momentum since midyear.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said the data “brings hope that September was a low point,” noting the first manufacturing growth in over a year and stronger consumer demand for services. He added that inflationary pressures are easing back toward levels “consistent with the Bank of England’s 2% target,” while job losses are moderating and business confidence is ticking up slightly.
Still, the overall pace of expansion remains modest, consistent with GDP growth of only about 0.1%. Export weakness persists due to global trade disruptions tied to U.S. tariff policy. Firms are also cautious ahead of the November 26 Budget, with many delaying hiring and investment decisions. While the PMI data point to stabilization, the recovery remains fragile and heavily dependent on fiscal clarity and external demand.
