UK Services Growth Hits Four-Month High Amid Rising Costs

UK services growth reached its highest level in four months in August, according to S&P Global Services PMI, which rose to 52.5 from 52.1 in July.

The composite reading, including manufacturing, also hit a four-month high at 52.5, up from 52.2 in July.

However, the same survey found that more firms reported higher input costs and price hikes, which could impact mortgage pricing.

This is because when services inflation runs hot, it signals to markets that the Bank of England may need to hold or raise interest rates, pushing up swap rates used by lenders to price fixed-rate deals.