UK Service Industry Activity Hits Four-Month High in August

Surveys show that the growth rate of service industry activity in the UK last month was the fastest since April, and price pressures have eased, indicating a more moderate inflation outlook and a stabilization of the economy after the July general election.

In August, S&P Global UK Services PMI rose to 53.7 from 52.5 in July, higher than the initial value of 53.3. Cost pressures and sales price increases for service companies were the weakest since the beginning of 2021.

Tim Moore, director of S&P Global Economics, said: “The August data highlights the recovery of the UK service industry, and improved economic conditions and domestic political stability have helped promote customer demand.” However, optimism about the coming year has cooled slightly, and employment growth has slowed.

Moore added: “Some businesses are concerned about policy uncertainty before the autumn budget.” British Finance Minister Reeves warned that taxes will have to be raised in the October 30 budget to help ease pressure on public finances.

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