UK Services Sector Experiences Growth Amid Inflation Concerns

The UK's dominant services sector experienced growth for the second consecutive month in August, according to a survey from S&P Global. The S&P Global UK Services Purchasing Managers' Index (PMI) rose to 52.5 in August from 52.1 in July, its strongest growth since April.

Despite the U.S.-Iran war, business and consumer spending saw further gains after declining during the second quarter of 2026. Tim Moore, economics director at S&P Global Market Intelligence, stated that 'August data highlighted improving operating conditions across the UK service economy.'

The survey also found that more firms reported increasing prices they charge as well as higher input prices, a potential concern for the Bank of England. However, optimism among services firms rose to its highest since February.