The UK services sector showed encouraging signs of recovery in October, with PMI Services finalized at 52.3, up from September’s 50.8. Composite PMI also improved to 52.2 from 50.1.
According to Tim Moore, Economics Director at S&P Global Market Intelligence, the latest survey “offered some positive signals,” as both output and new business growth accelerated notably from September’s lows.
Service providers reported stronger client demand and a pickup in new orders, particularly in domestic markets. Many firms cited resilient consumer spending and a turnaround in new client wins as key drivers of October’s improvement. The data also pointed to labour market stabilization, with job cuts slowing sharply and business expectations rising to a 12-month high.
While higher wages were still pushing up costs, the overall pace of input inflation fell to its lowest level since November 2024. Selling prices increased at the slowest pace since June.
