EL7.AI
Macro EconomyMedium•23 October 2026•
2 min read

UK Activity Slows to 51.7 in September Ahead of October 28 Budget

Key Facts

1The UK preliminary composite output index fell to 51.7 in September from 52.5 in August, its lowest reading in three months.
2Consumer price inflation rose to 3.5% year on year in September from 3.1% in August.
3The UK manufacturing index stood at 52.0 in September, compared with 51.7 in August.
4The UK budget will be presented on Wednesday, October 28, 2026.

Growth in UK private-sector activity slowed in September, with the preliminary composite output index falling to 51.7 from 52.5 in August, according to an S&P Global survey cited by Reuters via Investing.com. The decline reflects a loss of some momentum compared with the previous month. The preliminary services activity index also fell to 51.7 from 52.5 in August. By contrast, the manufacturing purchasing managers’ index rose to 52.0 from 51.7, according to the same survey.

The slowdown in activity was accompanied by mounting price pressures in the services sector. Reuters said prices charged by services firms, a pillar of the UK economy, rose in September at their fastest pace in four months. The report linked the acceleration in cost pressures to higher energy prices associated with the conflict in the Middle East. At the consumer level, annual inflation in the UK stood at 3.5% in September, compared with 3.1% in August, according to the Associated Press. This places slower activity alongside faster inflation in a concurrent picture of the economy during the month.

Data from previous months provide context for comparing activity readings, without changing the direction of the decline recorded in September. In August, the final services index rose to 52.5 from 52.1 in July, and services firms’ sentiment toward the coming year was at its highest since February, according to Reuters via Investing.com. In October 2025, the UK composite output index stood at 51.1, up from 50.1 in September of that year, but remained below the long-run series average of 53.5, according to S&P Global. These readings show differing activity trends across periods, with the September 2026 reading weaker than August in the composite and services indexes. The available open sources did not include an October 2026 composite index reading or detailed employment data for that month.

As for upcoming data, the Office for National Statistics set October 23, 2026, as the date for its next release on retail sales, according to its open release page. The page did not show actual September data, so it does not provide an annual rate to report. The UK Treasury confirmed that the budget will be presented on Wednesday, October 28, 2026. The chancellor said: "I can confirm today that the date of my first Budget as Chancellor will be Wednesday 28 October." The budget date follows September figures that combined slower activity growth with higher annual inflation.