UK Private Sector Growth Slows, Inflation Pressures Rise

S&P Global reported that UK private-sector growth lost momentum in September, with the Flash Composite PMI falling to 51.7 from 52.5, its weakest reading in three months. The Services PMI also slipped to 51.7, while the headline Manufacturing PMI improved to 52.0, marking a three-month high. The overall pace of expansion was consistent with only around 0.1% quarterly GDP growth.

The mixed signals suggest underlying economic weakness, as demand conditions clearly weakened and export sales contracted at the fastest pace since June. Concurrently, input-cost inflation accelerated for the second consecutive month, reaching a three-month high.