UK Services Sector Sees Second Straight Month of Growth

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

This improvement in operating conditions was driven by gains in business and consumer spending, which saw further increases after declining in the second quarter of 2026. However, more firms reported rising prices and higher input prices compared to July, a potential concern for the Bank of England as it tries to gauge how much of the surge in energy prices will be passed on.

The survey also showed that optimism among services firms rose to its highest level since February, despite concerns about the Iran war and inflation. Employment decreased at the slowest pace since October 2025, helped by improved sales pipelines and broader market conditions.