UK Business Activity Slows Amid Rising Inflation Pressure

Britain's business activity has cooled down in September, with growth slowing to 51.7 from 52.5 in August according to a recent survey by S&P Global.

The UK Services Purchasing Managers' Index (PMI) fell to its lowest level in three months, and prices charged by services companies rose at the fastest pace in four months due to increasing energy costs.

Economists say that government borrowing costs and rising inflation pressure threaten to cloud Britain's economic outlook, with subdued business confidence and high costs discouraging hiring.

The survey also points to quarterly economic growth of around 0.1% compared to 0.4% in the second quarter, which could lead the Bank of England to raise interest rates on November 5.

However, the manufacturing sector showed some signs of improvement, with a rise in domestic orders and optimism hitting a seven-month high.