UK Private Sector Growth Hits One-Year High in August

The UK's private sector saw its strongest growth in 12 months, primarily led by the services sector, according to the S&P Global Flash UK PMI data for August. The PMI Composite Output Index rose to 53.0, up from 51.5 in July, marking a 12-month high. The services sector led the expansion with a PMI of 53.6, also a 12-month high, while manufacturing showed signs of stabilising despite a marginal decline in production. New business volumes expanded at the strongest pace since October 2024. However, employment decreased for the eleventh straight month, with firms citing weak order books and rising staff costs due to policies announced in the autumn budget. Input cost inflation edged up to its highest since May, with suppliers passing on increased National Insurance costs. Despite this, business activity expectations rose to the highest since October 2024, due to optimism in both manufacturing and service sectors.