UK private sector growth softens as new business growth eases

The UK private sector's growth cooled last month, as progress in the services economy eased, a survey showed on Monday.

The S&P Global composite purchasing managers' index fell to 52.0 points in September, from 52.5 in August. The figure was above the 51.7 flash reading. However, it moved closer to the 50 point neutral mark than it was in August, suggesting growth slowed.

The latest reading was a three-month low.

"Softer rates of growth were seen in both the manufacturing and service sectors, with the former posting its weakest upturn for six months. New business growth also slowed in September and was only marginal overall. Backlogs of work decreased, as has been seen in each month since May 2023. Rates of input cost and output price inflation recorded by private sector firms reached the highest since June, largely due to higher energy, fuel and transport bills," S&P Global said.

The composite PMI is calculated using the services and manufacturing readings.

The services PMI registered 52.1 in September, down from 52.5 in August, S&P Global said Monday. It was above the 52.1 flash reading.

"Service providers remained upbeat overall about the year ahead business outlook, reflecting hopes of a sustained recovery in customer demand, as well as new projects starts and planned business investment," S&P Global said.

Data on Thursday showed the manufacturing PMI edged up to 51.9 points in September, from 51.7 in August.

The services PMI features a panel of 650 firms, with responses collected in the second half of the month.

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