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Economic Buzz: UK business output growth accelerates in December, led by sharpest rise in new business for 14 months
16-Dec-2025 15:23
The headline seasonally adjusted S&P Global Flash UK PMI Composite Output Index registered 52.1 in December, up from 51.2 in November and indicative of a moderate increase in output levels.

Faster rises in business activity were seen in both the manufacturing and service sectors, although growth remained subdued in comparison to long-run trends.

December data indicated that business activity growth across the UK private sector economy regained momentum, supported by the strongest upturn in new work since October 2024.

Cutbacks to staffing numbers persisted, however, with employment decreasing for the fifteenth successive month.

Stronger inflationary pressures were signalled at the end of 2025. Input costs increased sharply and at the fastest pace since May. At the same time, prices charged inflation rebounded to the highest seen since August.

A renewed upturn in new order intakes helped to boost private sector output in December. Backlogs of work at private sector firms increased for the first time since February 2023, albeit only marginally.

Input price inflation accelerated for the second month running and reached its highest level since May. This was led by another sharp increase in average cost burdens across the service economy in December.

December data meanwhile indicated a modest recovery in business activity expectations for the year ahead.

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