Corus Steelworks is seen January 26, 2009 in Teesside, northern England. REUTERS/Nigel Roddis/File Photo
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LONDON (Reuters) Aug 23 Poll showed Tuesday.
The S&P Global/CIPS Purchasing Managers’ Index (PMI) flash composite estimate fell to 50.9 in August from 52.1 in July, its lowest level since February 2021 and near the 50 mark that separates growth from contraction.
Economists polled by Reuters had forecast the index would fall less sharply to 51.1.
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While service sector activity remained near July levels, the manufacturing component fell to 46.0 in August from 52.1 in July, the lowest level since May 2020 in the depths of the COVID-19 pandemic and among all Forecasts in a Reuters poll.
“Slacking customer demand amid the weaker economic outlook and lack of staff and inputs have reportedly hit commodity producers hard,” said Annabel Fiddes, economist at S&P Global.
The Bank of England has warned that the UK is likely to slip into a recession in late 2022 that will last into 2024 as soaring energy bills, largely due to the Russian invasion of Ukraine, will push consumer price inflation above 13% in October.
Economists at Citi forecast on Monday that inflation would top 18% in January if regulated household energy tariffs start to rise again. Continue reading
Tuesday’s data showed some signs of easing inflationary pressures elsewhere in the economy, reflecting a fall in the prices of some commodities such as metals.
Manufacturers’ input costs rose at the slowest pace since November 2020, although a persistently tight labor market pushed up costs for service firms slightly. Overall, companies have increased prices for consumers the least in seven months.
“Companies often mentioned that intense market competition and efforts to attract new workers have limited overall pricing power,” said S&P Global.
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Reporting by David Milliken; Editing by Susan Fenton
Our standards: The Thomson Reuters Trust Principles.
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