UK private sector economic activity revised higher

The S&P Global UK Services PMI was revised higher to 51.3 in November 2025 from a preliminary estimate of 50.5, though below October's reading of 52.3.

Despite the uptick, the latest data indicated a slowdown in business activity growth across the UK service economy amid weakening demand conditions both at home and abroad. Survey participants noted that fragile client confidence, elevated risk aversion, and Budget-related uncertainty, combined with difficult global economic conditions, were weighing on business.

Consequently, workforce numbers were trimmed to the greatest extent since February. On the price front, input cost inflation accelerated during November, mostly driven by higher salary payments, but prices charged increased at the slowest pace for nearly five years amid intensifying price competition. Service providers remain broadly optimistic about growth, though confidence eased since October and stayed below the post-pandemic trend.

The S&P Global UK Composite PMI fell to 51.2 in November of 2025 from 52.2 in the previous month, revised higher from the preliminary estimate of 50.5 but still below the initial market expectations of 51.8.

Still, aggregate levels of new orders declined slightly in the period. The softer demand for capacity drove firms to cut employment at the sharpest pace since February, extending the pessimistic momentum as managers cite higher labor costs due to National Insurance contributions.

Consequently, input costs accelerated in November, but competitiveness and softer consumer demand drove output charge inflation to fall to its lowest since December 2020.