Flash UK services PMI disappoints at 51.7 in September

• The prior month's services PMI had been 52.5.
• Manufacturing PMI came in at 52.0, above the consensus forecast of 51.5.
• The prior month had recorded 51.7 for manufacturing.
• The composite PMI printed 51.7, falling short of the 52.0 estimate.
• The prior composite reading was 52.5.

Commentary from the economist:

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, remarked:

“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.

"Output growth across the manufacturing and services PMI surveys has slowed to a pace consistent with the economy growing 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.

"While the upturn in the survey’s price gauges suggest the Bank of England looks likely to keep a hawkish bias, the worryingly lacklustre pace of business growth underscores the risk to the economy from higher borrowing costs.”