UK recession risk increases, S&P data shows
More businesses than forecast reported a contraction in latest purchasing managers’ survey
UK economic activity slipped at the fastest pace since January 2021, according to a closely watched survey that suggests the chances of a recession have increased.
The S&P Global/Cips purchasing managers’ index fell to 46.8 in September, down from 48.6 in August, and the lowest in 32 months. The pound fell 0.4 per cent against the dollar to $1.2249, close to its recent six-month low.
The PMI reading was worse than the 48.7 that was forecast by economists polled by Reuters, and well below 50, which indicates a majority of businesses reporting a contraction in activity.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said the disappointing PMI Flash UK Composite Output for September meant “a recession is looking increasingly likely in the UK”.