The S&P Global UK Services PMI was revised lower to 51.4 in December 2025 from a flash estimate of 52.1, though slightly above November’s 51.3. This marked the eighth consecutive month of expansion in the sector but the pace of growth was only marginal and similar to November. Total new work rebounded in December, with growth modest and the pace of expansion well above the 2025 average. Survey respondents cited tentative signs of a recovery in client confidence after an extended period of pre-Budget gloom. Meanwhile, employment continued to fall for the fifteenth consecutive month, though the rate of decline moderated from November, amid reports of elevated pay pressures and squeezed margins. Turning to prices, inflationary pressures strengthened, with input prices rising at a seven-month high and output charge inflation rebounding from November’s recent low. Lastly, business activity expectations for the year ahead improved from November and was the second-highest since October 2024.
