The S&P Global UK services PMI fell to 51.7 in September from 52.5 in August, the lowest level in three months, while economists had previously expected the index to be 52.0. Service companies, which are the backbone of the UK economy, have increased their fees to the fastest level in four months. Affected by the rise in energy prices due to the escalation of the war in Iran, companies also reported that cost pressure is rising at an accelerated pace. S&P Global said the survey showed that the UK economy grew at a quarterly rate of around 0.1%, down from 0.4% in the second quarter. Since British Prime Minister Burnham came to power in July, a series of unexpectedly strong business and consumer data were released, and Chancellor of the Exchequer Healy has been trying to maintain a positive tone on the UK's economic outlook. However, economists say that soaring government borrowing costs and rising inflationary pressure may overshadow the economic outlook. Chris Williamson, S&P Global Chief Business Economist, said, “September saw a worrying combination of disappointing weak economic growth and increasing inflationary pressure, while low business confidence and high costs continued to dampen recruitment activities. The recovery in price indicators in the survey indicates that the Bank of England may continue to maintain its hawkish tendencies, but what is worrying is that weak commercial growth highlights the risks that higher borrowing costs pose to the economy.”
Zhitongcaijing · 1d ago
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The S&P Global UK services PMI fell to 51.7 in September from 52.5 in August, the lowest level in three months, while economists had previously expected the index to be 52.0. Service companies, which are the backbone of the UK economy, have increased their fees to the fastest level in four months. Affected by the rise in energy prices due to the escalation of the war in Iran, companies also reported that cost pressure is rising at an accelerated pace. S&P Global said the survey showed that the UK economy grew at a quarterly rate of around 0.1%, down from 0.4% in the second quarter. Since British Prime Minister Burnham came to power in July, a series of unexpectedly strong business and consumer data were released, and Chancellor of the Exchequer Healy has been trying to maintain a positive tone on the UK's economic outlook. However, economists say that soaring government borrowing costs and rising inflationary pressure may overshadow the economic outlook. Chris Williamson, S&P Global Chief Business Economist, said, “September saw a worrying combination of disappointing weak economic growth and increasing inflationary pressure, while low business confidence and high costs continued to dampen recruitment activities. The recovery in price indicators in the survey indicates that the Bank of England may continue to maintain its hawkish tendencies, but what is worrying is that weak commercial growth highlights the risks that higher borrowing costs pose to the economy.”
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