United Kingdom Composite PMI

The UK S&P Global Composite PMI was revised slightly higher to 53.5 in August 2025 from an initial estimate of 53.0, up from 51.5 in July. This marked the fourth consecutive month of growth and at the quickest pace since August 2024. The expansion was largely driven by the services sector (54.2 vs 51.8 in July), which rose to a sixteen-month high, offsetting a sharper contraction in the manufacturing sector (47 vs 48). Faster output growth was supported by a rise in new orders — the second increase in the past three months and the strongest since October 2024. However, job shedding persisted, even as firms reported improved business activity expectations. Several companies cited hiring freezes due to spare capacity and margin pressures from rising payroll costs.

The UK S&P Global Composite PMI rose to 53 in August of 2025 from 51.5 in the previous month, ahead of expectations that it would inch higher to 51.6 to set the sharpest growth rate in private-sector business activity in one year, according to a flash estimate. The expansion was carried by the services sector (53.6 vs 51.8 in July), which also rose to a one-year high, to offset a steeper contraction for service providers (47.3 vs 48). The strong momentum for services drove new business volumes at the aggregate level to rise the most since October of last year, even though factories recorded the strongest decline ne new work since April, pressured by economic headwinds of higher input costs and a global protectionist swing to goods trade. Input inflation was at the highest since May, with firms citing the burden of higher National Insurance payments and their impact in labor costs. Looking forward, business expectations for the upcoming year increased.

The UK S&P Global Composite PMI eased to 51.5 in July 2025 from 52 in June, but was revised higher from the initial estimate of 51. This marked the third consecutive month the index remained in expansionary territory. The slight loss of momentum reflected a softer expansion in the services sector (51.8 vs 52.8 in June) and a continued contraction in manufacturing (48.0 vs 47.7). There was a renewed downturn in new business, reversing the marginal improvement seen in June. The decline in new work added pressure on firms, leading to another drop in private sector employment—the sharpest rate of job losses since February. On the inflation front, input cost pressures continued to ease. Although cost burdens remained elevated, the rate of increase was the slowest since December 2024, suggesting that price pressures are gradually moderating.