- Prior 51.4
- Final Composite PMI 53.7 vs 53.9 prelim
- Prior 51.4
Key findings:
- Output growth rebounds to a five-month high
- Solid increase in new work
- Job losses continue, despite improved business
optimism
Comment:
Tim Moore, Economics Director at S&P Global Market
Intelligence, said:
“The latest survey revealed an encouraging start to
2026 for the UK service sector, following a sluggish
end to last year. Output growth was the fastest for five
months, supported by an uplift in investment sentiment
and greater new order intakes. A number of firms
suggested that post-Budget clarity had contributed to
a broader improvement in client confidence, while some
also cited rising export sales.
“Despite a recovery in total new work, service providers
still reported that consumer demand was constrained
by squeezed disposable incomes, while risk aversion in
response to geopolitical tensions was a factor holding
back business spending.
“Service sector companies appear cautiously optimistic
about their growth prospects for the next 12 months,
with confidence the highest seen since October 2024.
However, there were again gloomy signals for the UK
labour market outlook as staff hiring decreased at a
steeper pace in January as firms looked to offset rising
payroll costs. Another sharp increase in overall input
prices contributed to the fastest rate of output charge
inflation for five months.”
This article was written by Giuseppe Dellamotta at investinglive.com.