Growth in UK private activity has slowed more than expected to an 18-month low as manufacturing shrank on weaker demand, supply shortages and labour, a survey showed on Tuesday.
The S&P/Cips Global flash UK composite purchasing manager index, a measure of private sector activity, dropped to 50.9 in August from 52.1 in the previous month and the lowest since February 2021.
The reading, based on data collected between August 12 and 19, was weaker than the 51.1 forecast by economists polled by Reuters and was only marginally above the 50 mark that indicates a majority of businesses reporting an expansion from the previous month.
“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 Annabel Fiddes, economics associate director at S&P Global Market Intelligence.
UK manufacturers signalled an accelerated fall in…
