Professional and business services defy summer slowdown with 6% annual turnover growth
The latest Index of Services statistics for August 2025 show that response rates were 73.4%, accounting for 87.6% of total turnover. Total GVA for services remained flat compared to the previous month at 103.5.
Similarly, professional, scientific and technical activities saw flat monthly growth in August but continued to outperform overall services at 105. Comparatively, the UK economy is at 102.7, indicating that professional services have grown almost twice as fast as the UK economy since 2022. In addition, total turnover for professional services sustained a 6% year-on-year increase.
Chloe Austin, Director and Senior Analyst in Professional and Business Services, said: “The latest Index of Services data for August 2025 reaffirms the strategic importance of the Professional and Business Services (PBS) sector to the UK economy and in delivering growth ambitions as part of the government’s Industrial Strategy. Despite a seasonal dip in monthly turnover, most notably a 17% decline in legal services likely attributed to a slowdown during the summer holidays, the sector continues to demonstrate resilience.
“In addition, GVA figures for professional, scientific and technical activities outperformed overall services at 105.0. More importantly, total turnover for professional services remains 6% higher year-on-year, an indication of sustained demand and long-term growth, reinforcing the sector’s role as a driver of productivity and innovation. Notwithstanding the seasonal dip in monthly turnover, the upward trend in annual figures demonstrates the importance of professional and business services as a growth-driving industry to support other industries and bolster the UK economy. This aligns with the latest GDP figures released today which show that services output grew by 0.4% in the three months to August, compared with the three months to May.”
She added: “We therefore expect PBS firms to push forward with their long-term planning, with focus on refining internal structures and strategies to boost efficiencies in the coming years. However, to ensure these strategies are realised long term, businesses will be looking for enhanced tax reliefs in the Autumn Budget to incentivise investment and enable them to scale innovation and encourage further AI adoption.”