UK economy gathers pace at start of 2026 but cost burdens persist, PMI shows

Activity in Britain’s services sector grew strongly in January and confidence rose, a survey showed on Wednesday, but firms also reported a jump in their prices, a potential concern for the Bank of England before its interest rate decision this week.

The S&P Global UK Services Purchasing Managers’ Index rose to 54.0 in January, the highest since August 2025, up from December’s 51.4. Wednesday’s reading was slightly lower than a preliminary flash reading of 54.3 which would have been the highest since April 2024.