UK service sector rallies in October - PMI
By Abigail Townsend
Date: Wednesday 05 Nov 2025
(Sharecast News) - The UK's dominant services sector grew by more than expected in October, a closely-watched survey showed on Wednesday, bolstered by burgeoning domestic demand.
The S&P Global UK services PMI business activity index was 52.3 last month, up on September's 50.8 and comfortably ahead of consensus and the flash reading, both 51.1.
A reading below the neutral 50.0 benchmark suggests contraction but one above it indicates growth.
Respondents said they had seen a "gradual" turnaround in new work and sales opportunities during the month, despite ongoing uncertainty among clients. Domestic demand was particularly strong.
Further supporting the sector was an improvement in input price inflation, which now stands at an 11-month low.
Expectations for the next 12 months also notably improved, rising to the highest level since October 2024.
The strong print helped push the PMI composite output index higher, up to 52.2 from 50.1.
The composite index is a weighted average of the S&P Global's manufacturing and services indices.
Tim Moore, economics director at S&P Global Market Intelligence, said the latest survey provided "positive signals" for the UK service economy.
He continued: "The rate of new business expansion gained momentum, with the latest upturn among the strongest see over the past year.
"A number of firms noted resilient customer demand, especially in domestic markets, despite elevated business uncertainty a delayed-decision making on major spending ahead of the Budget."
Matt Swannell, chief economic advisor to the EY Item Club, said: "Business cost pressures are starting to ease a little as companies have adjusted to April's rise in employers' National Insurance contributions.
"Nonetheless, this will gradually feed through to prices and we continue to think that inflation, particularly in the more labour-intensive services sector, will be sticky."
Surveys were sent to a panel of around 650 service sector companies, ranging from transport and real estate to finance and communication.
Data were collected between 9 and 29 October.
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