PwC comments on S&P Global UK PMI data - January 2026

Commenting on the S&P Global Flash UK PMI data for January 2026, Jake Finney, Senior Economist at PwC, says:

“The January PMI data suggest the UK economy has started the year on much firmer footing, with activity picking up strongly across the private sector. Greater post-Budget clarity appears to be helping unlock private sector investment, particularly in services.

“At face value, the figures imply the UK economy has weathered geopolitical disruption so far, with the PMI consistent with GDP growth of over 1.5% in 2026. That said, the timing of the survey means recent developments in Greenland are unlikely to be fully reflected. It remains an open question whether improving economic fundamentals will continue to trump geopolitical risk over the year ahead.

“The relative strength in business activity is tempered by renewed concerns around cost pressures. The latest PMI readings show little evidence that input cost pressures are easing, particularly in services, adding further weight to the view that the Bank of England is likely to keep rates on hold in February. While a cut later in the spring remains possible, persistent services-sector cost pressures mean a March move is far from certain.”