UK services growth revised up to 16-month high, PMI data shows
By Benjamin Chiou
Date: Wednesday 03 Sep 2025
(Sharecast News) - Activity in the UK's services sector accelerated more than expected in August, according to final estimates out on Wednesday from S&P Global, with growth hitting a 16-month high.
The services purchasing managers' index (PMI) for August was revised up to 54.2, from the flash estimate of 53.6 which had already smashed market forecasts of 51.8 when it was released two weeks ago.
That was up from 51.8 in July and the highest rate of growth - defined by any figure above 50.0 - since April 2024.
Growth was driven by a rebound in new order intakes following a moderate decline in July, with growth hitting an 11-month high, helped by rising sales in both domestic and overseas markets.
Meanwhile, business optimism reached a 10-month high on the back of hopes of a turnaround in customer demand, while concerns eased about the impact of US tariffs.
However, hiring trends remained "subdued" with workforce numbers having now decreased for the 10th straight month as higher payrolls costs hold back recruitment.
"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," said Tim Moore, economics director at S&P Global Market Intelligence.
"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," Moore added.
Wednesday's upgrade to the services PMI meant the composite PMI - which tracks both services and manufacturing activity together - picked up to 53.5 in August from 51.5 in July. That was up from the flash estimate of 53 and marked the strongest growth across the private sector since April 2024.
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