UK Business Activity Hits Eight-Month High in October

UK business activity grew at its fastest pace in eight months in October, with the S&P Global flash composite purchasing managers’ index recording a reading of 53.1. This figure exceeded economist forecasts of 51.7 and rose from September's reading of 52.

Growth was driven by the sharpest increase in new work in two years, fueled by AI investments, demand for technology services, and a general recovery in customer demand across the manufacturing and services sectors. Staff numbers also increased for the first time since September 2024.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that some spending has paused due to a lack of clarity on domestic economic policy ahead of the upcoming Budget. Businesses also reported headwinds including weak consumer confidence and geopolitical uncertainty regarding conflicts in Ukraine and the Middle East.