UK Business Growth Slows Down Amid Inflation Pressures

The UK's business growth has slowed down in September, according to survey data from S&P Global. The Services Purchasing Managers' Index fell to a three-month low of 51.7, from 52.5 in August. This decline is attributed to increased inflationary pressures and higher borrowing costs.

Services companies reported their fastest increase in prices charged in four months, while input cost pressures accelerated due to higher energy costs linked to the escalating conflict in Iran. The composite PMI, which combines services and manufacturing sectors, declined to 51.7 from 52.5 in August.

The data suggests that overall growth remains modest, at about 0.1% for the quarter, significantly lower than the 0.4% expansion recorded in the second quarter. This could reinforce the Bank of England's focus on inflation and increase pressure on Finance Minister John Healey ahead of his first budget next month.