UK Services Sector Expands Modestly Amid Export Slump

The UK services sector saw a modest expansion in August, according to the S&P Global UK Services PMI. The reading was revised down slightly to 52.5 from an initial estimate of 52.8, but still marked an improvement over July's 52.1.

Output expanded at its strongest pace in four months, driven by a moderate increase in new orders and recovering business and consumer spending. However, export sales declined for the sixth consecutive month due to subdued European demand and geopolitical uncertainty.

Employment fell at a slower rate than previous months, with input cost inflation picking up amid higher fuel, transport, wage, food, and technology costs. Output prices rose sharply and at a faster pace, but business optimism strengthened for the third consecutive month to its highest since February.