Financial News: UK Private Sector Growth At 1-Year High

UK Private Sector Growth At 1-Year High

08/21/2025 - 08:48:00 (RTTNews)

(RTTNews) - UK private sector output expanded at the fastest pace in a year in August, driven by a solid upturn in the service economy, flash survey results from S&P Global revealed on Thursday.

The composite output index climbed to 53.0 in August from 51.5 in July. The reading was also above the forecast of 51.6. A score above 50 indicates expansion in the sector.

The services Purchasing Managers' Index also increased to a 1-year high of 53.6 in August from 51.8 in the previous month. The expected score was 51.8.

Meanwhile, the manufacturing sector remained in contraction, as the factory PMI dropped to 47.3 in August from 48.0 a month ago.

New orders received by the British private sector grew at the fastest pace in ten months, driven by the service sector, which was offset by a weak demand faced by manufacturers amid US tariff uncertainty.

The survey revealed that employment was again a weak spot, as total workforce numbers decreased for the eleventh month running and at a marked pace.

On the price front, input price inflation accelerated to a three-month high, linked to cost pressures in both the manufacturing and service sectors. Survey respondents once again noted that suppliers had sought to pass on rising National Insurance payments. As a result, selling prices increased at a robust pace.

Looking ahead, service companies remained confident about expected business activity over the next year amid hopes of forthcoming business investment and product diversification plans, alongside an anticipated revival in domestic consumer spending. Manufacturers expect a rebound in customer demand and expect a tentative uplift in general market conditions over the next 12 months.

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