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UK Services PMI Hits 3-Month Low as Price Charges Rise at Fastest Pace in 4 Months
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According to S&P Global, the UK services PMI fell to 51.7 in September from 52.5 in August, the lowest in three months and below the 52.0 forecast by economists. Service sector firms reported the fastest rise in output prices in four months, while cost pressures accelerated due to rising energy prices linked to the escalation of the Iran war. The survey indicates the UK economy is growing at a quarterly rate of about 0.1%, down from 0.4% in the second quarter. Since Prime Minister Burnham took office in July, a series of unexpectedly strong business and consumer data have been released, and Chancellor Healey has tried to maintain a positive tone on the economic outlook. However, economists warn that surging government borrowing costs and rising inflation pressures could cloud the outlook. S&P Global Chief Business Economist Chris Williamson said the September data showed a worrying combination of weak growth and rising inflation, with low business confidence and high costs also suppressing hiring. He added that the rebound in price indicators suggests the Bank of England may maintain a hawkish stance, but weak business growth highlights the risk of higher borrowing costs to the economy.
Source report
September 23 — The S&P Global UK Services PMI declined to 51.7 in September from 52.5 in August, marking the lowest reading in three months and falling short of economists' expectations of 52.0.
Key findings from the report include:
- Price pressures accelerating: Service sector firms, which form the backbone of the UK economy, reported the fastest increase in output charges in four months.
- Rising cost pressures: Businesses cited escalating cost pressures driven by higher energy prices linked to the escalation of the Iran war.
- Slower economic growth: According to S&P Global, the survey points to a quarterly growth rate of approximately 0.1%, down from 0.4% in the second quarter.
Since Prime Minister Burnham took office in July, a series of unexpectedly strong business and consumer data have been released. Chancellor Healy has sought to maintain an optimistic tone regarding the UK's economic outlook. However, economists warn that surging government borrowing costs and rising inflationary pressures could cast a shadow over the economic outlook.
Chris Williamson, Chief Business Economist at S&P Global, commented:
"September saw a worrying combination of disappointingly weak economic growth and intensifying inflationary pressures, while subdued business confidence and elevated costs continue to dampen hiring activity. The rebound in price indicators in the survey suggests that the Bank of England may maintain a hawkish stance, but the sluggish business growth highlights the risks that higher borrowing costs pose to the economy."
Source
格隆汇Eastern
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UK services PMI falls to three-month low as inflation pressures intensify in September