UK Private Sector Strengthens On Services Activity Upturn

(RTTNews) - The UK private sector grew the most since early 2024 in January, signalling continued economic resilience despite geopolitical tensions, flash survey results published by S&P Global showed Friday.

The headline composite output index rose more-than-expected 53.9 in January, up from 51.4 in December. The expected score was 51.7.

The index has remained above the neutral 50.0 mark for the ninth straight month. Moreover, this was the highest since April 2024.

Service providers reported a particularly strong upturn in business activity, with the rate of growth hitting the fastest for 21 months. The flash services Purchasing Managers' Index improved to 54.3 from 51.4 in the prior month. The reading was seen at 51.7. At 51.6, the manufacturing PMI rose to a 17-month high from 50.6 in December. The reading was also above forecast of 50.6.

"The January flash PMI is up to a level indicative of a robust quarterly GDP growth approaching 0.4 percent," said S&P Global Market Intelligence Chief Business Economist Chris Williamson.

There was a sustained improvement in new order intakes across the private sector economy. The increase in new business was the fastest since October 2024 as export sales strengthened to the greatest extent for a year-and-a-half.

Firms reduced employment in January citing the impact of rising payroll costs and subdued economic conditions.

On the price front, the survey showed that strong input cost inflation persisted in January. As a result, average prices charged by private sector firms increased at the fastest pace since August 2025.

Meanwhile, business activity expectations improved for the second month in January. Levels of optimism regarding the year-ahead business outlook were the highest since September 2024, the survey showed.