Source: Sharecast
The flash S&P Global UK PMI composite output index came in at 51.7, down on August’s 52.5 and below consensus expectations of 52.0.
Within that, the services PMI business activity index slipped to a three-month low of 51.7, while the manufacturing output index fell to 51.4, the lowest print for six months. Only the manufacturing PMI showed an increase, rising to 52.0 from 51.7.
A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction.
The rate of input price inflation, meanwhile, accelerated for the second month in a row and now stands at the highest point since June. Respondents pointed to price hikes across energy, fuel and raw materials.
Christ Williamson, chief business economist at S&P Global Market Intelligence, said: "September is seeing a worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures, with subdued business confidence and high costs continuing to discourage hiring.
"While the upturn in the survey’s price gauges suggests the Bank of England looks likely to keep a hawkish bias, the worryingly lacklustre pace of business growth underscores the risk to the economy from higher borrowing costs."
The Bank of England last week once again kept interest rates on hold, at 3.75%. But it warned that Bank Rate could increase if inflation - now standing at 3.1% - continued to rise. Inflationary pressures have been mounting throughout the year, after the outbreak of war in the Middle East threw energy markets into turmoil.
The composite index is calculated by weighting together comparable manufacturing and services indices. Data were collected from panels of around 650 manufacturers and 650 service providers between 10 and 21 September.