Britain’s private sector growth slowed in August as factory output fell and the largest services sector recorded only modest growth, adding to signs that a recession may be on the way.
The S&P Global composite PMI fell to 50.9 in August from 52.1 in July, the lowest level since February 2021.
Economists had expected the index to drop to 51.1 points.
While activity in the services sector was almost unchanged from July, manufacturing fell to 46 from 52.1 points in August, the lowest level since May 2020, at the start of the pandemic.
S&P Global economist Annabel Fiddes pointed out that falling consumer demand amid a weaker economic outlook has hit goods producers hard.
The Bank of England has warned that Britain is likely to slip into recession at the end of 2022, which will last until 2024, as rising energy bills, mainly due to Russia’s invasion of Ukraine, pushed inflation above 13%. in October.
Today’s data did show some signs of easing inflationary pressures in other sectors of the economy, reflecting a drop in prices for some raw materials such as metals.
Source: Capital
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