UK PMI Services was finalized at 52.4 in September, down from August’s 53.7, while PMI Composite declined to 52.6 from 53.8. Despite the slight slowdown, the UK economy remains in positive territory, supported by improving order books and easing inflationary pressures.
Tim Moore, Economics Director at S&P Global Market Intelligence, highlighted that the decline in prices charged within the service sector—an important indicator of domestic inflation—reached its lowest level since February 2021. This cooling inflation is a promising sign for the broader economy, particularly as businesses prepare for the Autumn Budget on October 30th.
Although some service sector firms reported delays in decision-making due to uncertainty surrounding the upcoming budget, a majority (56%) of respondents expect a rise in business activity over the next year, with only 11% forecasting a downturn.
Business optimism saw a modest improvement compared to August, driven by lower borrowing costs, easing inflation, and more clarity on monetary policy expectations.
