UK services growth slowed as higher fuel costs increased inflationary pressure across the sector. The combination of weaker activity and rising costs could complicate the Bank of England’s decisions on interest rates and the broader economic outlook.
Britain's services sector remained in expansion in September but growth slowed as higher fuel costs intensified InflationInflation refers to a sustained rise in the general price level that reduces the purchasing power of money. The term belongs in Level 7 because it helps connect macro conditions...Read More pressure. The S&P Global services PMI slipped to 52.1 from 52.5 in August, its weakest reading since June, while firms reported a sharp rise in operating expenses linked to Middle East-driven energy costs. Businesses responded by increasing their selling prices at the fastest pace since May. The survey adds to evidence that the energy shock is reaching the UK's dominant services economy, complicating the inflation and interest-rate outlook.
