UK business activity falls at fastest level since start of last year
Date
9/25/2022 5:53:22 AM
(MENAFN) Business activity in the UK decreased at the fastest level in September since January last year, as shown by a flash estimate 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 the month before.
A renewed drop in service area activity was the major trigger of the worst headline number.
“This marked the first drop in services activity since February 2021, though the rate of decline was only marginal,” mentioned an announcement.
Adding: “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 that UK financial woes have worsen “as falling business activity indicates that the economy is likely in recession.”
He stated that “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.”
Chris Williamson continued: “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.”
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