Global tensions yet to hit professional and business services output
TODAY the ONS’s Index of Services statistics revealed an overall output growth of 0.5% in the services sector in the three months to February 2026, up from 0.3% in the three months to January 2026 and contributing to an overall GDP growth of 0.5% in the same period.
Professional, scientific and technical (PST) activities saw an overall growth of 0.8% in February alone, outpacing average services growth.
Hywel Pegler, head of professional and business services at RSM UK, said: “The 0.8% growth for professional, scientific and technical (PST) activities in February reflects their resilience and stability as a contributor to GDP growth, especially in the face of reductions in manufacturing and some consumer facing services. The accounting, bookkeeping, auditing and tax consultancy activities showed growth at 3.7% for February, following strong revenue growth of 9% in January, indicating a positive start to the year for this subsector.
“This growth is reflected in the revenue data for PST subsectors, which shows significant increases in management consulting services (11%) and architectural and engineering services (5%). In both cases, this marks a rebound from substantial falls in January. Overall, six out of seven PST subsectors saw revenue growth month on month, supporting the strong overall performance of the sector.
“In isolation, this data paints a more positive picture of PST growth and its contribution to the wider economy, demonstrating sector resilience in the face of numerous challenges. However, this still covers a period before the onset of the Iran war, so we are yet to see the impact of this feed into the data.
“As prices rise due to the oil shock, businesses may review discretionary spending on PST services over the coming months. Subsectors such as management consulting and architectural and engineering are likely to take the biggest hit, with compliance services staying more robust because of their necessity.
“Overall, whilst the results point to a degree of underlying strength and resilience, the medium-term outlook for professional and business services is likely to remain uncertain for the remainder of 2026 and beyond in keeping with the broader economy as a whole.”