United Kingdom Composite Output Index stood at 50.9 in August, signaling a further slowdown in business activity growth across the UK private sector, according to a preliminary report published by the S&P Global and the Chartered Institute of Purchasing & Supply (CIPS) on Tuesday. The August reading was the weakest figure in 18 months.
Flash UK Services PMI Business Activity Index also recorded the slowest seen figure for eighteen months, coming at 52.5. Meanwhile, Flash UK Manufacturing PMI plunged to its 27-month low, revealing a sharp decline in production to land at 46.0.
"The UK private sector moved closer to stagnation in August, as mild growth of activity across the service sector only just offset a deepening downturn at manufacturers," said Economics Associate Director at S&P Global Market Intelligence Annabel Fiddesm adding that "the tightening of financial conditions via interest rate hikes, the cost of living crisis, labor shortages and strained supply chains are all likely to dampen economic performance further and keep costs elevated in the months ahead."
