UK PMI survey shows sharpest business slowdown in 7 months

LONDON, Sept 5 - Business activity in Britain's services sector fell last month for the first time since January as higher interest rates reduced consumer and corporate demand, a survey showed on Tuesday, although the drop was less than initially estimated.

"Service providers saw customer spending reverse course during August as higher borrowing costs, subdued business confidence, and stretched household finances all acted to curtail sales opportunities," Tim Moore, economics director at S&P Global, said on Tuesday. Earlier on Tuesday, Barclays reported a slowdown in consumer spending growth in August, which it said was partly due to unusually wet summer weather as well as the broader cost-of-living squeeze.

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