British services companies reported their strongest growth in eight months in October, with the S&P Global UK Services Purchasing Managers' Index (PMI) rising to 52.8 from 52.1 in September, according to the final reading published on 4 November. A reading above 50 signals expansion, and below 50 signals contraction.

The final figure was slightly lower than the preliminary "flash" reading of 53.1 published on 26 October, which this site already reported. New orders rose for a fourth consecutive month, at the fastest pace since January, and firms hired again: the employment index rose two points to move above 50 for the first time since September 2024. Business activity expectations for the year ahead also reached an eight-month high.

Cost pressures sharpen

The improvement came with sharper cost pressures. Input prices rose at the fastest pace since May, with about 38 per cent of surveyed companies reporting higher purchase prices and only 1 per cent reporting declines. The composite PMI, which combines services and manufacturing, rose to 52.9 in October from 52.0 in September, its highest reading since February.

S&P Global Market Intelligence economics director Tim Moore said the results pointed to sustained resilience in the UK economy. The figures were published a day before the Bank of England's rate decision, and were read by markets as strengthening the case for a rise.

Sources: Reuters via LSE, UK services growth hits 8-month high in October, PMI shows, 4 November 2026; S&P Global via BigGo Finance, UK Services PMI Hits 8-Month High of 52.8 in October, 4 November 2026.