TODAY the ONS Index of Services statistics revealed an overall output growth of 0.8% in the services sector in the three months to March 2026, up from 0.6% in the three months to February 2026 and contributing to an overall GDP growth of 0.6% in the same period. However, the monthly figures were slightly weaker, with services increasing by 0.3% in March compared to 0.5% in February.

Professional, scientific and technical (PST) activities saw an overall growth of 1.2% in the three months to March.

Hywel Pegler, Head of Professional and Business Services at RSM UK, said: “Today’s figures show a month-on-month slowdown in output growth for professional, scientific and technical (PST) activities, following the onset of the war in Iran. However, the overall trajectory remains positive and highlights its resilience and strength as a key contributor to GDP growth.

“The necessity of many PST services, such as compliance, allows the industry to remain somewhat insulated from the economic impact of the Middle East crisis, but no industry is completely immune. Sustained uncertainty around economic conditions could have a marked impact on recruitment activity, due to businesses showing greater caution around hiring and potential jobseekers opting to stay put for stability. This, in turn, could have a negative impact on overall output growth.

“For many professional and services firms, the importance of market resilience has never been clearer, with heightened cost pressures and volatile market conditions threatening to hamper growth. This has sparked new attention around AI solutions, and their potential to help mitigate against the risks of economic uncertainty. Whilst investment in AI could provide longer-term security, firms will need to balance this against the shorter-term cost pressures and economic risks caused by the war.”

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