Professional and business services output grows, but pre-budget pressures weigh on outlook
The latest Index of Services statistics showed Professional, scientific and technical (PST) activities saw a 2.1% output growth in the three months to July 2026, as one of the main contributors to overall services output growth.
Overall, the services sector showed 0.6% growth in the three months to July 2026, with GDP growing by 0.4%.
Hywel Pegler, Head of Professional and Business Services at RSM UK, said: “Professional, scientific, and technical (PST) activities continue to show remarkable resilience and remain fundamental to the UK economy. Investment in technology appears to have been a key driver of this ‘better than expected’ result.
“That said, there are short term headwinds. Increasing concerns around government spend, rising inflation, pressure on gilts yields, and political uncertainty ahead of the Autumn Budget may lead businesses to adopt a more cautious approach to investment and decision-making, which could hamper growth in the near-term as 2026 draws to a close.
“There remains cause for a more optimistic long-term outlook. The government’s ambition to stimulate growth will likely be underpinned by support from the wider ecosystem of lawyers, accountants and other professional advisors to support its objectives and aspirations, as the Prime Minister looks to replicate his achievements as Mayor on a national scale.”