UK December flash services PMI 52.1 vs 51.6 expected

The UK's December flash Services PMI was reported at 52.1, exceeding the expectations of 51.6. The Manufacturing PMI also showed strength at 51.2, above the expected 50.4. While these are positive indicators, there are underlying concerns of sluggish growth, widespread job losses, and a renewed rise in selling price inflation impacting both goods and services. The economic growth remains dependent on technology and financial services, with other sectors struggling. Job losses continue to worry businesses, compounding issues with rising staff costs. While the Bank of England (BoE) is likely to cut rates on Thursday, the tone will likely be cautious, remaining highly data-dependent moving forward. These economic figures suggest some relief, but the path to further rate cuts in 2026 will depend on clear signs of easing price pressures.