Cost pressures cloud professional and business services outlook
The latest Index of Services statistics showed 0.7% overall output growth for the services sector in the three months to May 2026, following 0.9% growth in the three months to April 2026.
Professional, scientific and technical (PST) activities saw an overall growth of 1.8% in the same three-month period, following an overall growth of 2.0% in the three months to April, and was among the biggest contributors for overall services output growth. The data for May alone showed a 1.8% increase for PST activity.
Hywel Pegler, Head ofProfessional and Business Services at RSM UK, said: “Professional, Scientific and technical activities (PST) continue to show resilience in the face of persistent economic uncertainty, outperforming the broader economy. The growth in the three months to May 2026, which was driven by advertising and market research (up 6.7%) and accounting, bookkeeping and auditing activities (up 4.2%), demonstrates its importance as a sub-sector, and a key driver of economic growth.
“However, long-term cost pressures could prove a significant challenge, particularly with tensions once again ramping up in the Middle East and a change of UK government leadership driving further political and economic uncertainty. This could incentivise firms to pre-emptively consider cost-management strategies in the nearer term, to help mitigate the risks for future headwinds.
“The recent services trade deal agreed between the UK and Switzerland is a promising development for the sector. The ability for UK businesses to provide services for up to 90 days without a work permit, due to expire in 2029, has been made permanent, facilitating the stability of activity between these regions, and providing scope for future international investment. This could, in turn, provide a welcome boost to PST activities, and support the longer-term growth efforts of the industry.”