UK business activity growth picks up in October

23rd Oct 2026 09:54

(Sharecast News) - UK business activity growth picked up in October, according to a survey released on Friday.

The flash S&P Global composite purchasing managers' index ticked up to 53.1 from 52.0 in September, beating expectations for a reading of 51.7. This was above the 50 mark that separates contraction from expansion for the fourth month in a row and marked the highest reading since February.

Faster rates of output growth were recorded in both the manufacturing and service sectors, with the former posting its strongest upturn for just over two years.

S&P Global said greater demand meant that employment numbers returned to growth, albeit only marginally, ending a two-year period of job cuts.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "This encouraging sign of economic resilience is underscored by firms taking on additional workers for the first time since hiring was hit by the 2024 Autumn Budget.

"There are reports of paused spending due to a lack of clarity on domestic economic policy in the run up to the Budget, meaning the promising economic picture from the latest PMIs should provide an encouraging base for further robust economic growth through the winter months, barring any adverse surprises to businesses in the tax and spending review.

"Geopolitics, and notably the potential for conflicts in the Middle East and Ukraine to add to energy market volatility, are, however, clearly still unsettling many businesses, and cost of living concerns and broader fiscal worries are being compounded by the shift to higher borrowing costs.

"Price pressures remain worryingly elevated, not only making a rate hike from the Bank of England at its upcoming policy meeting a near certainty but also likely shortening the odds of further rate hikes into 2027."