UK service sector activity showed only marginal improvement at the end of 2025, with Services PMI finalized at 51.4 in December, up fractionally from 51.3 in November. Composite PMI also edged higher to 51.4 from 51.2, pointing to continued but lackluster expansion across the broader economy.
According to S&P Global Market Intelligence, Economics Director Tim Moore said business activity growth remained subdued and weaker than indicated by the earlier flash estimate. Survey respondents cited persistent sales headwinds tied to soft UK growth prospects, rising business costs, and weak overseas demand, contributing to another notable decline in service sector employment.
Despite muted demand, inflation pressures intensified. Input prices rose at the fastest pace in seven months, while output charge inflation rebounded from November’s low.
