The S&P Global UK Services PMI was revised down to 52.5 in August 2026 from a flash estimate of 52.8, but above July's 52.1. The latest reading signalled a moderate expansion of overall service sector output, which was the strongest in four months. Business optimism strengthened for the third month running to its highest since February, shrugging off elevated inflation and ongoing uncertainty linked to the Middle East conflict. New orders expanded marginally in August, signalling a modest improvement in demand as business and consumer spending recovered. Export sales remained under pressure, declining for a sixth consecutive month amid subdued European demand and geopolitical uncertainty. Meanwhile, employment fell at the slowest pace since October 2025, although strong cost pressures and excess capacity continued to limit recruitment.