The activity in the United Kingdom's private business sector observed an improvement in January as The Purchasing Managers' Index (PMI) Composite Output Index, which combines the results in services and manufacturing, rose from the previous month's 52.1 to 52.9, S&P Global revealed in its final report issued on Monday. The figure came in higher than 52.5 predicted in the preliminary estimate.
Meanwhile, the Services PMI Business Activity Index increased from December's 53.4 to 54.3 in January, marking the highest figure since May 2023. However, the report noted that some companies reported a continued drop in household demand due to "cost-of-living pressures."
"The revival in UK service sector performance gained momentum at the start of 2024, with output growth accelerating to its fastest for eight months amid stronger business and consumer spending. New orders have also rebounded this winter as receding recession risks and looser financial conditions led to greater willingness-tospend among clients," S&P Global Market Intelligence Economics Director Tim Moore stated.
