PwC comments on the S&P Global UK Services PMI – January 2026

Mark Anderson, Global Business Services Leader at PwC UK said:  

“The UK's services sector has entered 2026 in its strongest position for nearly two years according to this month’s PMI Services figure (54.0). It’s encouraging to see output growth reach a five-month high, driven by increased business activity, confidence and post-Budget improvement in investment sentiment. 

“We’re seeing clients across the sector find the confidence to spend again, particularly in key areas such as digital marketing and technology, to support growth opportunities in new services and markets. The geopolitical and economic landscape is requiring businesses to adapt, as demonstrated by the rise in new work and export orders in European markets.

“Nonetheless, as reflected in PwC’s Global Business Services Index, optimism among services firms is tempered by continued decline in employment levels. With increased payroll costs and competitive pressures, companies are looking to automation and AI to enhance productivity. Margins are being squeezed as firms struggle to stay on top of a competitive market: insight from PwC’s Law Firm Survey showed that customer’s expectations around AI and efficiency was further pressuring margins in the sector. Navigating these dynamics will be critical to investment returns and maintaining growth across the sector.”