September 26, 2022
According to the results of a flash poll conducted by S&P Global and the Chartered Institute of Procurement & Supply, the UK private sector declined at its highest rate since early 2021 as a result of rising costs and a dimmer outlook for the economy.
In September, the composite output index registered at 48.4, a 20-month low, down from 49.6 in August. The score was anticipated to slightly decline to 49.0.
The sector-specific statistics revealed a resumption of the services activity downturn, which was the main cause of the lower headline figures.
While it was anticipated that the reading would reach a neutral 50.0 threshold, the services Purchasing Managers’ Index dropped to 49.2 from 50.9 a month earlier. The services sector experienced its first decline since February 2021.
The manufacturing PMI increased from 47.3 to 48.5 in the meantime. The anticipated value was 47.5.
The benchmark rate was increased by the Bank of England by 50 basis points on Thursday, making it 2.25 percent, the highest level since the global financial crisis of 2008.
Since May 2020, business outlook optimism has been at its lowest level. The company’s estimates for the coming year were hampered by worries about a UK recession, decreased consumer spending, rising costs, and interest rate hikes.
Source: RTT News
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