UK private sector growth hits an eight-month high in October and firms add staff for the first time since September 2024

Britain's private sector picked up speed in October. The S&P Global flash UK purchasing managers' survey, published Friday morning, put the composite output index at 53.1, up from 52.0 in September and the highest reading since February. Above 50 means growth.

Services activity rose to 53.1 and the manufacturing PMI to 52.8, a five-month high, while factory output grew at its fastest pace in just over two years. New work across the economy rose by the most since September 2024, with some firms pointing to spending on artificial intelligence and technology services and others still reporting caution among consumers and weak demand from construction and property clients.

Staff numbers rose for the first time since September 2024, though only marginally, and only because service providers hired. Costs climbed at the steepest rate since June as manufacturers paid more for energy, materials and transport, and supplier delays were the longest since May, which firms tied to disrupted shipping around the Middle East and shortages of chips and electronic parts.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said the price pressures made a Bank of England rate rise at its upcoming meeting a near certainty and shortened the odds of further increases into 2027.