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."
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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
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More than a third of firms reported an increase in their average cost burdens
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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
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Employment fell for the 24th month in a row, the longest period of decline since records started in 1997
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Business sentiment for the year ahead edged down from August's seven-month high due to weak demand and cost pressures
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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
Source: Reuters