UK services sector growth remains 'lacklustre' in December
Growth in the UK service sector improved slightly in December, purchasing managers’ index survey results from S&P Global showed on Tuesday.
The S&P Global UK services PMI business activity index edged higher to 51.4 points in December from 51.3 in November, but underperformed against the flash reading of 52.1.
The reading remained above the neutral 50-point mark separating growth from contraction, and indicated a rise in business activity for the eighth successive month.
The seasonally adjusted S&P Global UK composite PMI output index, a blend of the service and manufacturing sector readings, rose to 51.4 points in December from 51.2 in November to remain in expansion territory for the eight month in a row. However, it missed the flash estimate of 52.1 points.
‘Lacklustre business activity growth continued across the UK service sector at the end of 2025,’ commented Tim Moore, economics director at S&P Global Market Intelligence. ‘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.’
He added that survey respondents ‘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.’
Previously on Friday, S&P Global reported that UK manufacturing showed further signs of stabilisation at the end of 2025.
The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index rose to 50.6 points in December from 50.2 in November, marking a 15-month high and remaining above the 50.0-point threshold.
The final reading was, however, below the earlier flash estimate of 51.2 points published in mid-December.
The services PMI is compiled by S&P Global from responses to a questionnaire from a panel of around 650 service sector companies in the UK. The responses were collected between December 4 and 19.
The S&P Global construction PMI for December is scheduled for publication on Wednesday.
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