UK economic recovery steadies in Sept, price pressures mount -PMI
Reuters
Published Oct 05, 2021 04:34AM ET
Updated Oct 05, 2021 04:57AM ET
LONDON (Reuters) - Britain's post-lockdown economic recovery avoided losing further momentum in September but companies increased prices at the fastest pace on record, adding to signs of rising inflation, a survey showed on Tuesday.
The final reading of the IHS Markit/CIPS composite Purchasing Managers' Index (PMI), which combines Britain's services and manufacturing sectors, edged up to 54.9 from 54.8 in August, the first time it did not fall since May.
The reading was also higher than the preliminary estimate for September of 54.1.
While the figure represented strong overall growth for companies, shortages of staff, raw materials and transport led to the slowest growth in new orders since shortly before the lifting of coronavirus lockdowns in early 2021.
Some companies said the scheduled end on Sept. 30 of a tax break for home-buyers contributed to the slowdown in new orders.
Backlogs of work grew as firms struggled to fill their vacancies and a slowdown in job creation from a record high in August reflected some redundancies ahead of the expiry of the government's furlough scheme at the end of the month.
Companies raised the prices they charged at the fastest pace since the composite index was launched in 1999. Input costs also rose sharply for services firms but they grew more slowly for manufacturers.
The Bank of England is watching closely for any signs that the recent rise in inflation might prove longer-lasting than it has predicted. Last month the BoE said the case for an interest rate hike had strengthened as inflation pressure mounted.
IHS Markit said the data had yet to fully reflect the inflationary impact of Britain's fuel crisis and surging energy prices at the end of the month.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.