UK business activity remains robust in Sept, but growth moderates – PMI

The UK private sector business activity continued to show a sustained upturn in September, marking 11 consecutive months of expansion, a survey showed on Monday. However, the overall pace of expansion moderated for the first time since June due to output growth slowdowns in both manufacturing and services.

Prices charged by UK businesses eased to a 42-month low in September. Yet, there were still signs of elevated cost pressures in September. The overall rate of input price inflation ticked up since August amid higher wages and shipping costs.

The headline seasonally adjusted S&P Global Flash UK PMI Composite Output Index recorded 52.9 in September, down from 53.8 in August. It is but still comfortably above the 50.0 no-change value. Higher levels of business activity have been seen in each month since November 2023 and the latest rate of expansion lies broadly in line with the average over this period.

“The September PMI data bring encouraging news, with robust economic growth being accompanied by a cooling of inflationary pressures. The data therefore hint at a ‘soft landing’ for the UK economy, whereby the fight against inflation is showing increasing signs of being won without higher interest rates having caused a downturn.” Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said.

Attribution: S&P Global Flash United Kingdom PMI®