British firms post their strongest growth in eight months, yet a Bank of England rate hike looks near certain

UK businesses resumed hiring in October, ending a dry spell that began when the 2024 Autumn Budget dampened recruitment. The S&P Global composite index climbed to 53.1 from September's 52, surpassing the 51.7 that economists had pencilled in. New orders expanded at their fastest pace since September 2024, with AI-driven investment lifting sales. Chief business economist Chris Williamson cautioned that price pressures remain 'worryingly elevated'.

Before the Budget, some firms had held back spending due to 'a lack of clarity' on economic policy.

Manufacturing climbed to 52.8, while services hit an eight-month high of 53.1.

Williamson said the likelihood of rate hikes extending into 2027 is growing.