UK services and composite PMI both slip to 51.7 in September
Both gauges came in below the 52 economists had expected, extending a slowdown from August's readings.
Published
The S&P Global UK services PMI fell to 51.7 in September, missing expectations of 52. The composite PMI, which combines services and manufacturing, dropped to the same level.
Both readings remain above 50, the line that separates expansion from contraction, but the fall marks a step down from August. The composite PMI stood at 52.5 that month, itself up from 52.2 in July, according to Trading Economics. Services led that August strength with a reading of 52.5, versus 52.1 in July, while manufacturing eased to 51.7 from 51.9, Trading Economics reported. That August report pointed to rising labour costs from new National Insurance contributions and faster input cost growth from high fuel prices and wages, per Trading Economics.
The September miss lands as pressure builds on UK growth from rising energy costs and inflation expectations that show little sign of easing. Those pressures have been pushing up gilt yields and weighing on the broader economy. A weaker services reading adds to concerns about a near-term slowdown, though the shortfall is modest and recent data have been mixed enough that it does not shift the overall balance of risks for the economy.