Recovery predictions for professional and business services derailed by global tensions
Commenting on the lates Index of Services figures released by the ONS, Hywel Pegler, Head of Professional and Business Services at RSM UK said: “Today’s data indicates a disappointing start to the year, with January alone showing 0% growth for both the wider economy and the services sector, despite the 0.2% growth for the three months to January 2026. However, the monthly view is much more positive for professional, scientific and technical (PST) activities, which saw a 0.6% increase, up from 0% in December 2025, outperforming both services growth (0%) and wider economy growth (0%). This was largely driven by the increase in scientific research and development.
“The revenue figures for January also show reductions in most areas, with legal activities being down 13% on the previous month, following a 14% increase in December. Five out of the seven PST subsectors for the three months to January 2026 showed a fall in revenues compared to the previous figures, showing the broader ongoing challenges of the sector as it grapples with business cycles and sluggish levels of wider economic growth.
“Over the past two weeks, global events have taken over in a way that renders previous predictions for 2026 obsolete. What was hoped to be a year of recovery for professional and business services and the wider economy has turned into a period of uncertainty with concern over rising energy costs driving headline inflation.
“The professional and business services sector is not immune to this, and it will have to contend with expected price rises and uncertainty over consumption in the medium term as we move further into the year.”