Pound Sterling Weakened as UK Business Activity Slows

The Pound Sterling Live reports that the UK's business activity slowed in September while the Eurozone posted its strongest reading in three and a half years.

The UK composite PMI fell to 51.7 from 52.5 in August, below the 52.0 consensus, with services accounting for the miss and manufacturing rising to 52.0.

Economist Andrew Wishart attributes the slowdown to the pass-through of 100 basis points of expected Bank of England tightening into mortgage rates, which has squeezed house purchase demand and prompted purchasing manager reports of reduced discretionary consumer spending.