UK services firms raise prices at fastest rate since May as Middle East fuel surge reverses inflation slowdown

From the Newshound archive · first published 5 October 2026.

British services companies pushed prices up at their sharpest pace since May last month, as surging fuel costs driven by the Middle East conflict wiped out months of easing inflation. The S&P Global UK services PMI came in at 52.1 for September, down slightly from August's 52.5 but above an earlier estimate of 51.7, marking a third consecutive month of growth. Higher oil and gas prices, international shipping disruption and increased staff pay all drove input costs to their strongest rise since June. S&P Global economics director Tim Moore warned the jump in prices charged to customers represents "a clear reversal of the slowdown seen in the middle of 2026."

September also marked two years of continuous job cuts across UK services firms, though the pace of decline was the slowest in nearly a year.

New order growth slowed to its weakest rate in three months, with geopolitical tensions, squeezed consumer budgets and higher borrowing costs all cited as headwinds.

Technology services were the only clear bright spot, with resilient demand standing out against weakness across hospitality, real estate and transport.