Britain’s services sector continued to expand in September, but growth slowed and fuel costs pushed inflation pressures higher, according to the final S&P Global purchasing managers’ survey released Monday.
The Services Purchasing Managers’ Index registered 52.1, down from 52.5 in August. A reading above 50 indicates that more surveyed companies reported expansion than contraction.
Fuel costs reverse earlier easing
The September reading was the joint-weakest growth rate since June, Reuters reported. Service companies said higher fuel costs connected to the Middle East conflict increased their operating expenses.
S&P Global economist Tim Moore said the rise in input costs led companies to increase the prices they charged at the fastest rate since May. That marked a reversal from the slower price growth recorded during the middle of 2026.
The final 52.1 reading was stronger than the preliminary estimate of 51.7 published on September 23. Final survey figures incorporate a broader set of responses, so revisions between the flash and final releases are common.
What the survey does and does not show
Services account for most UK economic output, making the survey a closely watched early indicator. However, PMI results measure the direction and breadth of business responses rather than official gross domestic product, employment or consumer-price totals.
The combination of continued activity growth and stronger price pressures may complicate the outlook for interest rates. It does not, by itself, determine the Bank of England’s next decision, which will also depend on official inflation, wage and labor-market data.
Higher energy costs are already appearing across other sectors. A September manufacturing survey also reported renewed cost pressure, while international oil markets remain sensitive to supply and shipping risks. See AskNovus’s report on oil prices and the G7 reserve release for related context.
More economic reporting is available in Finance News and Business.
Sources
- Reuters final PMI report, October 5, 2026.
- Reuters preliminary PMI report, September 23, 2026.
- S&P Global PMI methodology and releases, accessed October 5, 2026.