UK businesses reported their strongest growth since February in October, with manufacturing and services both gaining momentum, according to S&P Global's latest survey.
The composite purchasing managers' index rose to 53.1 from 52.0 in September, while new orders grew at their fastest pace in more than two years. Manufacturers reported their strongest rise in output for 25 months, and private-sector employment increased for the first time since September 2024.
Firms cited stronger customer demand, including spending on technology and artificial intelligence, among the factors supporting growth.
UK mid-sized businesses reported their strongest increase in activity for 22 months in September, according to NatWest’s Mid-market Growth Tracker. Its survey index rose to 56.2 from 52.4 in August, above the 50 level that separates growth from contraction. Services led the expansion, while manufacturers reported a more modest increase in output. The results measure business survey responses, rather than an official increase in GDP.
Airtel Money has set a £1.96 offer price for its planned London flotation, implying a £5.3 billion valuation at admission. Existing shareholders are expected to sell 270 million shares, worth about £529 million before any over-allotment. Admission to the London Stock Exchange’s Main Market is expected on 14 October. The offer sells existing shares rather than raising new capital for Airtel Money.
Aldi announced £900m of UK investment for 2027, covering 40 new stores and distribution-network works. The commitment is distinct from its price-cut spending and annual turnover.
Major UK banks completed what the industry described as the first transactions between banks using tokenised commercial-bank deposits. The Great British Tokenised Deposit pilot included remortgage payments and a simulated marketplace purchase.
The British Business Bank launched a £140 million fund covering Essex, Suffolk, Hertfordshire, Norfolk and Cambridgeshire. Appointed managers will offer loans of £25,000–£2 million and equity investments up to £5 million; the headline is committed fund capacity, not money already deployed.
Reclaim Fund has approved £370.3 million for distribution to the National Lottery Community Fund under the UK’s Dormant Assets Scheme, its largest annual amount. A revised reserving strategy made approximately £185 million more available while preserving original owners’ right to reclaim their money. Total funding committed since the scheme began now exceeds £1.6 billion. Programmes across the four nations support youth opportunities, financial inclusion, social investment and community initiatives. The £370.3 million is approved for onward distribution; the accounts do not establish that the full sum has reached individual beneficiary organisations.
The British Business Bank launched the fund with appointed debt and equity managers and completed its first £250,000 loan. The £210 million is available fund capacity, not capital already deployed.
PXN Ventures and the British Business Bank have added £80 million to NPIF II – PXN Equity Finance, increasing the fund from £100 million to £180 million and extending its investment period to 2030.
Molten Ventures completed a £175 million first close for its new later-stage technology fund, including a £75 million cornerstone commitment from the British Business Bank. The stated £350 million figure is a future target, not capital already closed.
The UK Government released first-year Local Growth Fund allocations to five Scottish regional partnerships after approving their three-year investment plans. The funding covers infrastructure, commercial space and skills activity; it is not £52.1 million of completed construction.