The British economy picked up in October. The flash PMI for the whole private sector rose to 53.1, from 52.0 in September. A reading above 50 signals growth. It is the best reading since February. The data were published by S&P Global on 23 October.
The services index stood at 53.1. In manufacturing, output grew at the fastest pace in more than two years. New orders rose at the fastest rate in 25 months, with demand improving both at home and abroad.
The most important news concerns jobs. Firms increased employment for the first time since September 2024. The rise is small and mainly in services. Factories continued to cut jobs slightly.
There is a downside too. Business costs rose at the fastest pace since June, especially in manufacturing. Prices charged to customers rose slightly more slowly than in September. S&P Global’s chief business economist Chris Williamson says price pressures make a Bank of England rate rise almost a foregone conclusion. The bank’s decision is expected on 5 November.
Some firms have held back spending until the Budget, which the government will present next week. Firms also point to the wars in Ukraine and the Gulf, energy prices and more expensive credit.
What it means for you
Workers: after two years of cuts, firms are looking for people again, especially in services. It is a good moment to look for a better offer.
Families with a mortgage: if the Bank of England raises rates, variable-rate mortgages and new deals after a fixed rate ends may become more expensive.
Polish businesses in the UK: orders are increasing, but so are costs. It is worth checking prices in contracts with customers and suppliers.
Our assessment
These are good figures, but only a flash reading. Full results will come in early November. Rising orders and the return of hiring show the economy is stronger than weak consumer sentiment suggested. At the same time, rising costs signal to the Bank of England that it needs to act. In our view a rate rise in November is very likely. Much also depends on the Budget: new taxes on business could quickly halt recruitment.
What to do
- If you have a mortgage, check when your fixed rate ends and compare offers using the free service MoneyHelper.
- If you run a business, review your price lists and add a price-adjustment clause for cost increases to your contracts.
- If you are looking for work, browse vacancies on Find a job (GOV.UK).
Source: S&P Global, UK Flash PMI; Reuters / Global Banking & Finance Review (23.10.2026).
We assess factual corrections and substantive responses. Verified changes are reflected in our reporting.
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