LONDON, Sept 23 (Reuters) – The slowdown in UK private sector activity deepened in September amid soaring costs and falling demand, preliminary survey results showed on Friday. monthly report from S&P Global to purchasing managers.
The composite PMI index, which includes the services sector and the manufacturing industry, fell to 48.4, the lowest figure since January 2021. The Reuters consensus put it at 49.0 after 49.6 in august. The bar of 50 separates contraction and growth of the activity.
“The UK’s economic difficulties worsened in September, with the drop in activity indicating that the economy is likely in recession,” said Chris Williamson, chief economist at S&P Global.
According to him, the leading indicators suggest that the worst is to come in the last months of the end of the year.
The “flash” PMI for the services sector came out at 49.2 in September, the lowest since January 2021, against 50.9 in August.
That of the manufacturing sector, on the other hand, rose to 48.5 against 47.3 the previous month, but remains below the 50 mark.
The indicators come as Finance Minister Kwasi Kwarteng is due to present details of Prime Minister Liz Truss’ new “growth plan” which is meant to provide additional fiscal support to the economy.
(Report David Milliken; French version Claude Chendjou, edited by Kate Entringer)