UK Services Activity Expands at Fastest Pace Since August as Confidence Hits New High
The UK services sector grew to 54.0 in January as business confidence reached its highest level since 2024 while firms reported a sharp rise in prices.
Insights:
The S&P Global UK Services Purchasing Managers Index rose to 54.0 in January 2026, signalling a robust expansion in activity across the primary engine of the economy in GB 
GB. This reading, published on February 4, 2026, by S&P Global Inc. , marked a significant increase from the 51.4 recorded in December and represents the highest services PMI since August 2025. Although Wednesday's final figure of 54.0 was slightly lower than a preliminary flash reading of 54.3, any reading above the 50.0 threshold indicates growth in activity.
GB. This reading, published on February 4, 2026, by S&P Global Inc. , marked a significant increase from the 51.4 recorded in December and represents the highest services PMI since August 2025. Although Wednesday's final figure of 54.0 was slightly lower than a preliminary flash reading of 54.3, any reading above the 50.0 threshold indicates growth in activity.Broader economic measures also showed improvement as the composite PMI increased to 53.7 in January from 51.4 in December. While this composite figure was below the 53.9 first reported, it reached its highest level since August 2024. According to the survey, expectations for future output were the strongest since October 2024, indicating a resurgence in business confidence after it had declined in the run-up to the second budget delivered by Rachel Reeves rachel reevesin November 2025.
