The flash composite PMI – which blends early data from manufacturing and services – dropped from 52.5 in August to 51.7 in September, according to S&P Global. A reading above the 50‑point threshold still indicates expansion, but the decline marks the slowest pace of growth in three months.
The index’s dip comes as the rate of input‑price inflation rose for a second consecutive month, reaching its highest level since June. Analysts attribute the surge to soaring energy and fuel costs linked to the ongoing conflict in Iran.
Chris Williamson, chief business economist at S&P Global Market Intelligence, warned that “September is seeing a worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures.” He added that subdued business confidence and high costs are discouraging hiring.
Williamson said the flash PMI data suggest that overall UK economic growth is running at a mere 0.1% quarterly rate. He cited high energy prices, elevated business costs, geopolitical tensions, higher borrowing costs and policy uncertainty ahead of the autumn Budget as key headwinds.
While the private sector has expanded for a third month in a row, the slowdown signals that the broader economy may be edging toward a more fragile recovery, with firms likely to tighten hiring and investment plans if cost pressures persist.