Private sector ‘encouraging’ despite gloom in hospitality

THE UK’s private sector expanded at the fastest rate in nearly two years in January.

- By Samuel Norman

However, the reeling hospitality sector was feeling the fallout of Labour policy.

The latest Flash Purchasing Managers Index from S&P Global showed a major uptick in the all-important services sector — often seen as the engine of the economy — making up over 80% of output.

January data showed a “sustained improvement” in new order intakes across the private sector, with business optimism at its highest level since before the 2024 autumn Budget.