The S&P Global UK Services PMI climbed to 53.6 in August 2025 from 51.8 in July, topping market forecasts of 51.8, flash estimates showed. Business activity rose for the fourth consecutive month, recording the fastest growth in a year, supported by a renewed increase in new orders. Service providers often cited improving demand conditions both at home and abroad. Meanwhile, employment continued to decline at a solid pace in August, largely due to concerns over rising staff costs due to the policies announced in the autumn Budget. On the price front, inflationary pressures intensified with both input costs and output charges rising faster. Looking forward, firms’ expectations for business activity improved, underpinned by investment plans, product diversification initiatives, and a projected rebound in domestic consumer demand.