Cost pressures on British services companies and a major acquisition deal for Schneider Electric

British services companies reported increased pressure on their costs in September, with fuel prices rising due to conflict in the Middle East, prompting companies to raise their service prices at the fastest pace since May, according to a survey released on Monday.

The main index for the services sector in the Standard & Poor's Global Purchasing Managers' Index recorded 52.1 points in September, compared to 52.5 points in August, equivalent to the weakest growth pace since June, according to Reuters.

“Higher fuel prices resulting from the conflict in the Middle East continued to push input cost inflation higher in September,” said Tim Moore, director of economics at Standard & Poor’s Global Market Intelligence. He added that this led to the largest increase in prices charged by service sector companies since May, which represents a clear reflection of the slowdown that this indicator witnessed in mid-2026.

A measure of input cost inflation at British services firms rose in September to its highest level since June, driven by higher wages and fuel prices. More than a third of companies reported an increase in their average cost burden.

A measure of prices charged by companies also recorded its highest level since May, which may increase concerns at the Bank of England about renewed inflationary pressures.

In the labor market, employment fell for the twenty-fourth month in a row, the longest period of decline since data records began in 1997.

Business sentiment towards next year declined slightly compared to its highest level in seven months recorded in August, due to weak demand and cost pressures.

The Composite Purchasing Managers' Index, which includes the manufacturing sector, also fell to 52 points from 52.5 points, recording the lowest level since June, but it remained in the growth range above the 50 level.

Al Moammar Information Systems Company (MIS) received the second work order within its agreement with HUMAIN, with a total value exceeding 135 percent of the company’s total revenues for the year 2025, including value-added tax.

The company explained, in a statement on “Tadawul” on Monday, that Work Order No. (2) was received on October 4, and its implementation period is 16 months.

It indicated that the financial impact of the work order will begin as of the fourth quarter of the fiscal year 2026.

The second work order comes within the agreement signed by Al-Muammar Information Systems with Humane, with a value exceeding 689 percent of the company’s total revenues for the year 2025, including value-added tax, provided that the work is carried out in stages and under work orders issued in accordance with the provisions of the agreement.

The company had previously announced the receipt of Work Order No. (1) with a value exceeding 148 percent of the total revenues of 2025, which represents the scope of work related to the capacity of 50 megawatts, and its financial impact began as of the second quarter of 2026.

European stocks rose slightly on Monday, recovering some of last week's losses, while French stocks came under pressure due to financial concerns, and Schneider Electric shares fell after the company's $22.6 billion acquisition of the American software company BTC.

The European Stoxx 600 index rose by 0.2 percent to 632.42 points by 07:20 GMT, while the movement of most major indices in the region ranged between stability and rise. The index recorded its largest weekly loss in a month, amid rising bond yields, which reinforced concerns about inflation and deteriorating financial expectations, according to Reuters.

The French CAC 40 index fell by 0.8 percent, while the euro fell to its lowest level in 17 months, with investors concerned about the French debt burden and political stagnation ahead of the presidential elections scheduled for next year.

Schneider Electric shares fell by 7.2 percent, after the French engineering company concluded the largest acquisition deal in its history.

Spanish stocks were largely stable after Prime Minister Pedro Sanchez called early elections on November 29.

Mining company shares rose 0.5 percent as precious metal prices rose, after weaker-than-expected US jobs data reinforced expectations that the Federal Reserve would keep interest rates unchanged this month.