UK PMI surveys delivered a more constructive signal in December, pointing to firmer momentum at year-end. PMI Manufacturing jumped from 50.2 to 51.2, a 15-month high, while PMI Services rose from 51.3 to 52.1. PMI Composite also climbed to 52.1 from 51.2.
S&P Global noted that businesses were buoyed by the “post-Budget lifting of uncertainty”. The survey is consistent with GDP growth accelerating to around 0.2% in December, though momentum for the fourth quarter as a whole remains more modest at roughly 0.1%.
Despite the improvement, growth remains uneven. Output and demand are still described as “lackluster overall”, with expansion heavily reliant on technology and financial services. Many other sectors continue to struggle or remain in outright contraction. Job losses were reported as worryingly widespread, raising doubts over whether stronger orders will translate into renewed hiring, particularly with staff costs still cited as a major pressure.
Taken together, the PMI data supports expectations for a further rate cut at the December MPC meeting, while reinforcing that the path for additional easing in 2026 will remain highly data dependent.
