The UK's services industry saw growth slow in September, with companies increasing prices at the fastest rate since May due to higher fuel and energy costs, according to a new survey.
The S&P Global UK services PMI index recorded a reading of 52.1 in September, down from 52.5 in August. Any reading above 50.0 indicates sector growth, while a reading below signals contraction.
The score exceeded an earlier estimate of 51.7 and marked the third consecutive month of increased business activity.
Cost pressures and price rises
Firms surveyed reported surging fuel prices and increased staff pay as factors pushing up overall business costs last month. In response, companies raised the prices they charge customers at the fastest pace since May to protect their margins.
September's survey also marked two years of continuous job cutting across the services industry, although at the slowest rate for nearly a year.
Sector impact
Services firms span subsectors including hospitality and leisure, real estate, financial services, healthcare and transport, and represent the dominant industry in the UK.
Tim Moore, economics director for S&P Global Market Intelligence, said: “Surging fuel prices due to the Middle East conflict continued to drive up input cost inflation in September.
“This led to the sharpest increase in prices charged by service sector companies since May and therefore signalled a clear reversal of the slowdown seen in the middle of 2026.”
