UK services firms start hiring again for the first time in two years as growth hits an eight-month high

Britain's services sector posted a PMI reading of 52.8 in October, its highest since February, as new orders surged at their fastest pace since January. Thursday's Bank of England decision is now widely expected to deliver the first interest rate rise since 2023, and the strength of the data has raised the prospect of further tightening stretching into 2027.

Cost pressures are biting hard — input price inflation hit a five-month high in October, driven by energy, fuel, transport costs and rising wages.

AI investment spending is a key engine of growth, with multiple firms crediting corporate tech budgets for boosting their order books.

The return to hiring is 'marginal', with firms citing cost control and AI-driven efficiency as reasons to keep headcount tight.