The S&P Global flash UK composite purchasing managers’ index recorded a reading of 51.7 for September, down from 52.5 in August.
Growth across Britain’s private sector has slowed to a three-month low in September amid a “worrying combination” of sluggish expansion and rising inflation in the wider economy, according to a report.
New early figures show that while activity in the private sector expanded for the third month in a row, the pace of growth slowed to the weakest since June.
The closely watched S&P Global flash UK composite purchasing managers’ index (PMI) – which is based on preliminary data from the manufacturing and services sectors – recorded a reading of 51.7 for the month, down from 52.5 in August.
Any score above 50.0 indicates activity is growing while any score below means it is contracting.
Meanwhile, the rate of input price inflation rose for the second month in a row to reach its highest since June as soaring energy and fuel prices caused by the Iran war take their toll.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “September is seeing a worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures, with subdued business confidence and high costs meanwhile continuing to discourage hiring.”
He said the flash PMI survey data suggested growth in the wider economy was running at “a mere” 0.1% quarterly rate.
“Growth, business confidence and employment are all being hamstrung by high energy prices, elevated business costs, geopolitical worries, higher market borrowing costs and uncertainty over Government policy at home in the run-up to the autumn Budget,” he said.
