UK PMI survey shows sharpest business slowdown in 7 months

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Higher borrowing costs reduced consumer and corporate demand and curtailed sales opportunities.

The S&P Global/CIPS Purchasing Managers’ Index for Britain’s services sector fell to 49.5 in August from 51.5 in July.

The broader composite PMI — which also includes Friday’s very weak manufacturing PMI — dropped to 48.6 from 50.8, again the lowest since January but revised up from an estimate of 47.9 for August, which was the lowest since January 2021. When the initial estimate was published on Aug 23, S&P Global said it pointed towards a 0.2% contraction for Britain’s economy in the three months to September. The latest readings are still below the 50 level which separates growth from contraction.

 

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