UK business activity decreases at quickest rate in September| MENAFN.COM

Sunday, 04 December 2022 12:08 GMT

UK business activity decreases at quickest rate in September


(MENAFN) Business activity in the UK fell at the quickest rate in September since January last year, in line with a flash approximation by S&P Global on Friday.

The S&P Global/CIPS flash Composite Purchasing Managers’ Index (PMI) declined to 48.4 this month from 49.6 in August.

A renewed decrease in service sector activity was the main cause for the lower headline number.
“This marked the first drop in services activity since February 2021, though the rate of decline was only marginal,” according to a declaration.

“There were a number of reports that a slowdown in sales amid the cost of living crisis and rising economic uncertainty had weighed on activity levels in September.”

Chris Williamson, the head business economist at S&P Global Market Intelligence, stated UK financial woes have extended “as falling business activity indicates that the economy is likely in recession.”

He said companies have recorded that the high prices of living, which is related to the energy crisis, and high worries on the outlook are reducing demand.

“Inflationary pressures continue to run higher than at any time in over two decades of survey history prior to the pandemic. Renewed supply constraints, soaring energy prices and rising import costs associated with the weakened pound are adding to cost pressures,” he added.

“However, the detrimental impact of tightening policy into a recession is becoming increasingly apparent, with the downturn likely to intensify as we head into winter.”

MENAFN25092022000045012476ID1104920228


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.