UK Private Sector in Best Month Since August 2024, PMI Shows

Across the private sector, firms are still facing headwinds from higher employment costs, with job losses accelerating in December.Photographer: Jose Sarmento Matos/Bloomberg

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By Irina Anghel

February 4, 2026 at 9:30 AM UTC

Updated on

February 4, 2026 at 10:36 AM UTC

British businesses grew at the fastest pace in 17 months in January, according to a closely watched survey, pointing to a turnaround in private sector activity.

S&P Global’s purchasing managers’ index rose to 53.7, up from 51.4 the month before and above the crucial 50 threshold indicating growth. While slightly below the 53.9 flash estimate, it was the strongest reading since August 2024, just before the first tax rises of the new Labour government started denting sentiment.