UK Service Sector Growth Improves On Output, Orders

(RTTNews) - The UK service sector grew the most in five months in January amid strong growth in output and new work, final data from S&P Global showed on Wednesday.

The final services Purchasing Managers' Index advanced to 54.0 in January from 51.4 in December. The flash score was 54.3.

The reading has remained above the 50.0 threshold for the ninth consecutive month. Moreover, the reading was the highest since August 2025.

Total new business grew at the fastest pace in three months. Rising export orders supported overall new business gains.

The survey showed that employment numbers decreased in each month since October 2024. Input prices increased in January but the rate was slower than December's seven-month high. At the same time, the rise in output charges was the steepest since August 2025.

Service sector optimism hit the highest since October 2024. Service providers typically noted improved sales pipelines due to more upbeat sentiment among clients and expected investment spending.

Further, there was stronger growth momentum across the UK private sector economy. At 53.7, up from 51.4 in December, the composite index hit its highest level since August 2024. But the reading was below the initial estimate of 53.9.