UK December final services PMI 51.4 vs 52.1 prelim

• Prior 51.3
• Final Composite PMI 51.4 vs 52.1 prelim
• Prior 51.2

Key findings:

• Business activity expansion remains marginal
• Renewed upturn in new orders
• Input cost inflation accelerates to seven-month high

Comment:

Tim Moore, Economics Director at S&P Global Market
Intelligence, said:

“Lacklustre business activity growth continued across
the UK service sector at the end of 2025. Moreover, the
speed of expansion was softer than signalled by the
earlier ‘flash’ survey in December and lower than seen
on average in the second half of the year.

“The most positive development was a renewed upturn
in new business intakes, following a slight decline during
November. Modest growth of incoming new work was
attributed to tentative signs of a recovery in client
confidence after an extended period of pre-Budget
gloom. Order books were also supported by a marginal
rebound in export sales.

“However, survey respondents still noted sales
headwinds linked to weak UK economic prospects,
alongside challenging operating conditions due to
factors such as sharply rising business costs and soft
demand in major overseas markets. Worries about
squeezed margins and broader growth prospects
contributed to another marked reduction in service
sector employment during December.

“Meanwhile, inflationary pressures across the service
economy strengthened at the end of the year. Input
prices rose to the greatest extent for seven months, and
output charge inflation rebounded from November’s
recent low, despite the subdued demand backdrop.”

This article was written by Giuseppe Dellamotta at investinglive.com.