Financial News: UK Service Sector Growth Gains Strength

UK Service Sector Growth Gains Strength

08/21/2026 - 09:23:00 (RTTNews)

(RTTNews) - The UK service sector grew at the fastest pace in six months in August, offsetting a slowdown in manufacturing output, flash purchasing managers' survey data from S&P Global showed Friday.

The flash services Purchasing Managers' Index advanced unexpectedly to 52.8 from 52.1 in the previous month.

The score was seen at 51.8. The reading suggested that the services activity grew the most since February.

In contrast, manufacturing production grew only marginally in August and at the weakest pace for five months. Geopolitical uncertainties and elevated cost pressures were cited as constraints on growth. The factory PMI posted 51.5, down from 51.9 in July and below forecast of 51.6.

Consequently, the overall composite output index rose moderately to 52.5 in August from 52.2 in July. Economists had forecast the index to fall to 51.6.

"The UK economy picked up a bit more pace in August, adding to signs that we should see solid economic growth of around 0.3% in the third quarter," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

"The expansion is being helped by sunny weather and tech investment, though as expected we have seen some softening of growth in the manufacturing sector as precautionary stock building cools," added Williamson.

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