Financial News: UK Private Sector Growth Improves In October

UK Private Sector Growth Improves In October

10/24/2025 - 08:53:00 (RTTNews)

(RTTNews) - UK private sector activity logged some growth momentum in October, led by a renewed increase in the manufacturing output along with a mild upturn in the services economy, flash survey results from S&P Global revealed on Friday.

The composite output index rose to 51.1 in October from 50.1 in the previous month. A score above 50 indicates expansion in the sector. The expected reading was 50.6. Nonetheless, the latest reading was weaker than the long-run series average of 53.5.

The services Purchasing Managers' Index climbed to 51.1 from 50.8 in the previous month. The score was forecast to rise to 51.0.

The factory PMI increased to a 1-year high of 49.6 in October from 46.2 a month ago.

The survey revealed that total new orders returned to growth in October, linked to improving sales pipelines in the service economy. Moreover, the latest growth rate was the second-fastest since October 2024.

Meanwhile, export orders logged a sharp reduction in the manufacturing sector due to weak global demand and cautious investment sentiment. Apart from that, lower international sales were attributed to US tariffs, including an indirect impact linked to spending cutbacks among customers in Europe and Asia.

During October, workforce numbers reduced at the slowest pace in five months, which was evident in both the manufacturing and service sectors.

On the price front, input price inflation eased to the lowest level since November last year amid softer raw material price inflation, alongside sterling exchange rate appreciation against the US dollar. As a result of competitive pressures, output price inflation moderated to the weakest since June.

Looking ahead, business activity expectations over the year ahead improved on the back of rising business optimism and tentative signs of a turnaround in market conditions, alongside planned new product launches and marketing initiatives.

"Companies are clearly treading cautiously in terms of spending, investment, and hiring ahead of the upcoming budget, the outcome of which has the potential to once again sway the business mood in the months ahead," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said.

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