Index of services: Professional and business services remain a bedrock of UK GDP despite wider challenges

The latest Index of Services statistics showed 0.5% overall output growth for the services sector in the three months to June 2026 (Q2), when compared with the three months to March (Q1), and follows 0.8% growth in Q1.

Professional, scientific and technical (PST) activities continued to lead the charge as one of the biggest contributors to overall output growth, at 1.7% growth in the three months to June, following 1.8% in the three months to May. Overall, professional services accounted for 37% of UK GDP growth in Q2.

For June alone, the data showed a 1.0% increase for PST activity, making it the fastest growing services subsector in the month.

Hywel Pegler, Head of Professional and Business Services at RSM UK, said: “Professional, scientific and technical activities (PST) have demonstrated impressive growth in the first half of 2026, showing the sector’s value as a significant contributor to overall GDP growth. This is partly driven by the necessity of these services, which somewhat shields the sector from shorter term economic headwinds.

“The question now is whether the sector can sustain its resilience against prolonged cost pressures and economic and political uncertainty. With high energy prices and concerns over the long-term economic impact of the summer heatwaves, there is a risk that professional and business services will take a hit in the coming months. This long-term uncertainty could further incentivise firms to focus on investment strategies, such as AI, to improve efficiencies and maintain a competitive edge.

“Looking ahead, it will be interesting to see the impact that Andy Burnham’s government will have on the sector. Substantial policy changes, such as the implementation of devolution plans, could require significant advisory support, which could in turn provide a welcome output boost and support overall sector growth.”

authors:hywel-pegler