UK services firms suffer surge in costs, raise prices, PMI shows

LONDON, Oct 5 (Reuters) - British services firms reported stronger cost pressures last month as fuel prices surged due to the Middle East conflict and a measure of prices charged by companies hit its highest since May, according to a survey published on Monday.

The headline gauge in the S&P Global Purchasing Managers' Index for the services sector came in at 52.1 in September, down from 52.5 in August, its joint-weakest ​growth since June. 

"Surging fuel prices due to the Middle East conflict continued to drive up input cost inflation in September," said Tim Moore, economics director at S&P Global Market Intelligence. "This led to the sharpest increase in prices charged by service sector companies since May and therefore signalled a clear reversal of the slowdown seen in the middle of 2026."

• S&P's measure of input cost inflation for British services companies increased in September to its highest since June due to wages as well as higher fuel prices

• More than a third of firms reported an increase in their average cost burdens

• A measure of prices charged by companies was the highest since May, potentially adding to worries at the Bank of England about a pickup in inflation

• Employment fell for the 24th month in a row, the longest period of decline since records started in 1997

• Business sentiment for the year ahead edged down from August's seven-month high due to weak demand and cost pressures

• The composite PMI, ​which includes the manufacturing industry, eased to 52.0 from 52.5, the lowest since June but still in growth territory above the 50.0 level

(Reporting by Suban Abdulla; editing by William Schomberg and Toby Chopra)