Index of services: Professional and business services continues to drive the UK economy as bedrock of growth
The latest Index of Services statistics showed 0.9% growth for the services sector in the three months to August 2026, when compared with the three months to May, and follows 0.5% growth in Q2. In the quarter to August, overall, UK GDP rose by 0.7%
Professional, scientific and technical (PST) activities continued to lead the charge as one of the biggest contributors to overall output growth, at 2.8% growth in the three months to August.
Hywel Pegler, head of professional and business services at RSM UK, said: “Professional, scientific and technical activities (PST) have yet again demonstrated resilience and their underlying importance to the UK economy. The strength of the sector has been a consistent theme this year, despite macro challenges and inflationary pressures arising from the conflict in the Middle East.
“Whilst the impact of some of these input cost pressure may not yet have been felt in full, it’s encouraging to see a healthy demand for these services. This also comes at a time when the labour market is cooling.
“The Autumn Budget could further support professional and business services firms by providing stability, avoiding further increases in employment costs and offering targeted incentives that help businesses adopt new technology and AI. Plans for devolution could also present opportunities for professional services firms to support the Burnham government with its objectives.