The headline seasonally adjusted S&P Global UK Services PMI Business Activity Index registered 52.5 in March, up from 51.0 in February and the highest reading since August 2024. This was still lower than the long-run series average (54.3) and signaled only a moderate rate of expansion.
March data indicated that the rate of business activity expansion across the UK service economy gained further momentum. There were also reports of a gradual turnaround in demand conditions and a subsequent improvement in sales pipelines.
Total new work increased for the first time in 2025 to date, albeit only marginally, which was helped by a modest rebound in export orders. Despite an upturn in workloads, employment remained a weak spot. Staffing numbers decreased for the sixth month running, with survey respondents mostly citing the impact of rising payroll costs.
At 51.5 in March, up from 50.5 in February, the seasonally adjusted S&P Global UK PMI Composite Output Index was the highest for five months but signalled only a relatively subdued rate of expansion.
The latest reading was again below the long-run series average (53.6). A marked decline in manufacturing production weighed on overall private sector output growth. Total new work meanwhile decreased for the fourth consecutive month amid a steep and accelerated downturn in the manufacturing sector.
Strong cost pressures led to another month of falling private sector employment. That said, the pace of job cuts was the slowest since last November.