UK services activity strengthened in August as inflation pressures returned. The latest PMI shows improved demand and confidence, but rising input costs and selling prices add to the Bank of England’s policy challenge.

UK growth forecasts have improved, but business investment remains weak. The British Chambers of Commerce expects GDP to expand 1.0% this year while company investment contracts and export growth remains subdued.

UK retailers reported a sharp deterioration in August sales volumes. The CBI sales balance fell to -48, although investment intentions improved and businesses expect the decline to moderate in September.

UK inflation expectations have risen sharply after recent monthly falls. Citi and YouGov’s August survey shows both one-year and longer-term expectations increasing as higher energy costs complicate the outlook for interest rates.

Homes England has named 33 strategic affordable housing delivery partners. Their published allocations cover 73,617 homes and about £9.58bn in grants within the government’s ten-year Social and Affordable Homes Programme.

UK inward investment project numbers fell sharply in 2025-26. DBT recorded 1,020 projects, down 25.8%, while associated new jobs remained almost unchanged and safeguarded employment rose substantially.

Specsavers increased annual sales and profits despite sustained cost pressure. Pre-tax earnings reached £429.7m as the optical and hearing-care group also resumed a dividend to its parent.

UK businesses continue facing weak turnover and persistent cost pressure. ONS data shows economic uncertainty remains widespread, while labour and energy costs continue influencing pricing and operating decisions.

UK factory order books improved sharply during August’s industry survey. Export orders returned to normal levels, although production remained weak and manufacturers expected faster selling-price increases.