UK Services PMI Rises to 52.8 in October 2026, an Eight-Month High, as Firms Start Hiring Again
The S&P Global UK Services PMI rose to 52.8 in October 2026 from 52.1 in September, the highest since February, and service firms added staff for the first time in two years. Input cost inflation hit a five-month high.
By Entrepreneur Group · Published
The UK's service sector grew at its fastest pace in eight months in October 2026. The S&P Global UK Services PMI rose to 52.8, up from 52.1 in September and the highest reading since February, according to final figures published on 4 November and reported by Reuters. Service firms also added staff for the first time in two years, but cost pressures rose to a five-month high.
A PMI reading above 50 means activity is growing. The composite PMI, which combines services and manufacturing, rose to 52.9 from 52.0. The final services figure came in a little below the flash estimate of 53.1 that S&P Global published on 23 October.
What the survey found
According to Yahoo Finance's report of the final data and Reuters:
- New orders rose for a fourth month in a row, at the fastest pace since January.
- Export orders fell slightly, but by the smallest amount since March.
- Employment rose for the first time in two years. The increase was marginal.
- Input costs rose at the fastest rate in five months. About 38% of firms reported higher input prices and about 1% reported lower ones.
- Prices charged rose a little more slowly than in September.
- Business expectations improved to an eight-month high, though they stayed below the survey's long-run average.
Tim Moore, economics director at S&P Global Market Intelligence, said: "October data highlighted a combination of faster output growth and stronger price pressures across the UK service economy." Reuters reported that he linked rising workloads to an "improved pipeline of sales opportunities, particularly those linked to AI investment spending".
The figures follow a strong month for factories. As we reported on 3 November, the UK Manufacturing PMI also rose to 52.8 in October, a five-month high.
Why it matters for interest rates
The Bank of England announces its next Bank Rate decision at noon on 5 November 2026. When the flash data came out in October, Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Price pressures remain worryingly elevated", and called a rate rise at the upcoming meeting "a near certainty". Reuters also reported that the data pointed to a likely increase. Update, 5 November: the Bank raised Bank Rate to 4% by an 8-1 vote.
What it means for founders
This section is editorial guidance, not financial advice. A pick-up in new orders and hiring is a sign that demand for business services is improving after a weak period. At the same time, firms say their costs are rising faster, and a higher Bank Rate would push up the cost of variable-rate borrowing.
- Check your pricing. If your input costs are rising, review when you last updated your prices and whether contracts allow you to pass on increases.
- Plan hiring carefully. Employment growth was only marginal, so many firms are still cautious. Build any new roles into a cash flow forecast first.
- Review your borrowing. Note which loans and overdrafts are on variable rates and how a 0.25 percentage point rise would change your repayments.
Frequently asked questions
What was the UK services PMI in October 2026?
The final S&P Global UK Services PMI was 52.8 in October 2026, up from 52.1 in September. It was the highest reading since February, and the flash estimate had been 53.1.
Are UK service businesses hiring again?
Yes, but only slightly. The October 2026 survey showed service providers added staff for the first time in two years, and the increase was described as marginal.
What is the UK composite PMI for October 2026?
The composite PMI, covering services and manufacturing, rose to 52.9 in October 2026 from 52.0 in September, its highest since February.
Sources
- Global Banking & Finance Review (Reuters): UK services growth hits eight-month high in October, PMI shows (4 November 2026) (reviewed 5 November 2026)
- Yahoo Finance: UK services growth hits eight-month high in October (4 November 2026) (reviewed 5 November 2026)
- S&P Global: UK Composite PMI flash, October 2026 (23 October 2026) (reviewed 5 November 2026)