UK August final services PMI 54.2 vs 53.6 prelim | investingLive
- Prior 51.8
- Final Composite PMI 53.5 vs 53.0 prelim
- Prior 51.5
Key findings:
- Output growth accelerates during
- August
Rebound in new order intakes - Business optimism rises to a 10-month high
Comment:
Tim Moore, Economics Director at S&P Global Market
Intelligence, said:
“August data highlights a welcome acceleration of output
growth and a swift rebound in order books after July’s dip,
leaving the UK service economy on a much stronger footing
as the end of summer comes into view.
“The seasonally adjusted New Orders Index rose by over
six points in August, which was the largest one-month gain
since March 2021 and indicative of a decisive improvement
in customer demand. This was helped by greater domestic
business and consumer spending, alongside the first
increase in export sales since March.
“Hiring trends remained subdued in comparison to those
seen for business activity and new order intakes. Total
workforce numbers have decreased in each month since
October 2024, with elevated payroll costs again cited
as holding back recruitment. Some firms also reported
a focus on automation and investments in productivity
improvements to help alleviate margin pressures.
“Business activity expectations meanwhile hit a ten-
month high in August, providing a clear signal that growth
prospects for the UK service economy have moved up from
the lows seen this spring. Improved sales pipelines, lower
borrowing costs and receding fears about US tariffs all
helped to boost business optimism. However, many service
providers still commented on elevated government policy
uncertainty and worries about forthcoming tax-raising
measures expected in the autumn Budget.”