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

Commenting on the S&P Global Flash UK PMI data for October 2026, Paige Tao, Economist at PwC, says: 

“Private-sector activity gathered pace in October, with the PMI Composite Index rising to its highest level since February and marking a fourth consecutive month of growth. The improvement was broad-based: both services and manufacturing strengthened, while firms increased employment for the first time since 2024. Manufacturing was a particular bright spot, with output recording its strongest growth in over two years, supported by stronger demand linked to AI-related technology. Coming after the UK recorded the fastest growth among G7 economies in the first half of the year, today’s data suggest the economy has entered the final quarter with renewed momentum.

“The stronger reading comes against a still-challenging backdrop. Geopolitical tensions continue to disrupt supply chains and push up energy and transport costs, with input price inflation rising to its highest since June. At the same time, uncertainty over domestic policy and elevated borrowing costs are keeping businesses cautious, with some holding back spending ahead of the Autumn Budget. 

“The Budget therefore comes at an important juncture for the economy. With growth strengthening and businesses hiring again, a Budget that preserves stability would give firms greater confidence to invest, hire and build on the growth seen so far this year. A Budget that unsettles markets could quickly dent confidence and turn an encouraging start to the final quarter into a much grimmer winter.”