The S&P Global UK Services PMI was revised upward to 54.2 in August 2025 from a preliminary estimate of 53.6, accelerating from 51.8 in July. This marked the strongest reading since April 2024, reflecting solid output growth across the sector after a relatively subdued expansion in Q2 2025. In addition, new business rebounded to its fastest pace since September 2024, driven by stronger domestic and international demand. However, employment levels in the sector continued to decline, extending the current run of workforce reductions to eleven consecutive months — the longest stretch outside the pandemic period since the 2008–2010 downturn. On the inflation front, input prices rose sharply, reaching a three-month high in August, while output charges climbed to its highest level since April. Looking ahead, business sentiment improved notably, with 49% of respondents expecting higher activity over the next year, up from 44% in July, while only 14% anticipate a decline.