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UK businesses report another strong month as PMI survey shows expansion

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Business activity across the United Kingdom extended its early‑year rebound into a second month, according to the latest Purchasing Managers’ Index (PMI) survey data, underscoring resilient momentum in the private sector at the start of 2026.
The survey, compiled by S&P Global, indicates that firms continued to expand output and new orders, building on strong readings from January that placed UK activity at multimonth highs amid rising optimism among companies.

Despite lingering headwinds such as weak manufacturing orders and broader cost pressures in some sectors, the composite PMI reading above the 50 mark which separates growth from contraction suggests that British businesses are still maintaining solid growth trends overall. Services activity, a key driver of the economy, has remained especially robust, contributing significantly to the continued upturn.

The broader picture for business activity in Europe also shows improvement, with the euro zone private sector posting stronger growth driven by manufacturing rebounds in other major economies, further highlighting positive momentum across key regional markets.

On the domestic front, however, separate surveys highlight mixed signals: industrial orders remain subdued and manufacturing firms continue to face low demand and price pressures, underlining structural challenges even amid overall expansion.

while the UK’s private sector is reporting another strong month of activity according to the PMI survey, the recovery remains uneven with notable differences between service sector resilience and manufacturing sector difficulties.

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