[PMI Data Shows UK Economy Accelerated Growth in August, But Cost Pressures Worsen] The UK's dominant services sector grew for the second consecutive month in August, with business confidence also rebounding. However, an increase in the number of businesses reporting price increases may worry the Bank of England. The final S&P Global UK Services Purchasing Managers' Index (PMI) rose to 52.5 in August from 52.1 in July, marking the strongest growth since April. The final reading released on Thursday was slightly lower than the preliminary reading of 52.8, but further demonstrates the resilience of the UK economy despite the ongoing war between the US and Iran. Tim Moore, Head of Economics at S&P Global Markets Intelligence, said: "The August data highlights the overall improvement in operating conditions in the UK services sector. Business and consumer spending rebounded after declining in the second quarter of 2026."
