The UK’s flash composite purchasing managers’ index rose to 53.1 in October from 52, signalling its strongest activity growth since February. Services hiring helped total employment increase for the first time since September 2024, although factories continued to shed jobs. Companies faced faster input-cost increases in both sectors, while selling-price inflation eased from September but remained elevated.
Economics & Markets··Night
Activity expands at its fastest pace since February
The UK’s private sector expanded faster in October, according to the flash composite purchasing managers’ index, or PMI. The early survey reading rose to 53.1 from 52 in September. Published on October 23, the assessment marked a fourth consecutive monthly expansion and the strongest activity growth since February. A level above 50 indicates growth from the preceding month; the index measures responses from businesses about activity rather than a percentage change in national output.[1], [2]
Manufacturing and services output each registered 53.1. Factory output increased at its strongest pace since September 2024. Services new-business growth reached its highest rate since August 2025, while export orders in the sector grew for the first time since February. Manufacturing export growth was also among the strongest recorded over the preceding five years.[1]
Total employment increased for the first time since September 2024. Services companies supplied the additional jobs, while manufacturers continued to reduce staffing. Overall hiring remained modest. Business confidence improved relative to pre-war conditions but remained below its long-run average. S&P Global economist Chris Williamson assessed the activity reading, using historical relationships over the preceding five years, as consistent with approximately 0.7 per cent quarterly GDP growth. This was a survey-based estimate.[1]
Input costs accelerate in both sectors
Input prices increased faster in both manufacturing and services than in September. Respondents linked higher energy, fuel and freight costs to developments in the Middle East. Factory respondents also reported pressure from steel, copper, aluminium, plastics, semiconductors, circuit boards and chemicals. Food, software licences and server expenses appeared among other sources of rising costs.[1]
Companies raised selling prices at a rate higher than during most of the preceding 18 months, although the increase was smaller than in September.[1]
