UK Business Activity Slows as Inflation Pressure Builds

The UK's business activity cooled in September, and inflation pressure increased, according to the S&P Global UK Services Purchasing Managers' Index (PMI) survey.

The PMI fell to 51.7 from 52.5 in August, a three-month low, with prices charged by services companies rising at their fastest pace in four months.

Data company S&P Global stated that the survey points to quarterly economic growth of around 0.1%, compared to 0.4% in the second quarter.

Economists point out that soaring government borrowing costs and rising inflation pressure threaten to cloud the outlook, with a Reuters poll indicating a roughly 60% chance that the Bank of England will raise interest rates on November 5.