The latest Index of Services statistics for Q3 show that output grew by 0.2% in the three months to September 2025, as compared to the three months to June 2025, highlighting a positive outlook for the service industry as a whole.

This was a main contributor at 0.1% to GDP growth in the same period and helped to offset the 0.5% fall in production output largely attributed to a 0.8% fall in manufacturing following the production shutdown at JLR in September.

Despite the positive overall services outlook, this was mainly driven by arts and entertainment, real estate activities and public administration and defence, whilst professional, scientific and technical (PST) activities were down 0.6%. This was driven by a 0.9% monthly decline in September alone, followed by declines of 0.2% in August and 1.5% in July.

The ONS Monthly Business Survey turnover of services industries data shows overall quarterly revenue growth of 0.8%, but a decline for PST of 0.1% over the same period. Despite a seasonal fall in turnover over the summer, an increase of 11% in September helped to offset the quarterly data bringing total turnover for PST closer to the levels achieved in June 2025.

The categorisation by ONS means that scientific R&D is included within PST, and this saw the largest decline in turnover in the quarter to September 2025 at 5.6%. Across the remaining subsectors, Consulting, Architectural and Advertising all showed a quarterly decline, while legal and accountancy showed respective 4.4% and 0.9% increases in turnover.

Growth in turnover for September alone was consistent across the subsectors, with legal showing the largest month on month increase at 19.7%, which is not surprising given the 17.3% decline seen in August. Accountancy, Advertising and Architecture all largely offset the decline seen in July and August, while Consulting, despite having a good month, struggled to fully offset the 13.3% decline seen in July and recorded a 2.9% quarterly decline.

Chloe Austin, director and senior analyst in professional and business services at RSM UK, said: “The September results are a mixed bag for the Professional Services sector with a large monthly output decline against a monthly turnover increase indicating price inflation or margin changes, rather than real productivity gains.

“The increase in revenues against output will draw further attention to the margin-sensitive conditions and mean that management will continue to look at cutting costs. This is a key focus for firms as they look ahead to strategic growth in an ever-changing landscape with technology advances and continued interest from private equity changing the game.”

She added: “There is resilience across professional and business services firms, but focus will remain on ensuring they are set up for the future shift in how services are delivered. This is set to include the increased use of AI, both in enabling administrative efficiencies as well as starting to provide services itself, and consideration of value-pricing models.

“With the budget looming, there will continue to be some uncertainty, particularly around rumours about National Insurance contributions extending to partners in professional services partnerships. It will be interesting to see how budget uncertainty impacts the performance across the industry in Q4.”

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