"September's acceleration in output growth now looks like a flash in the pan,"
"Many survey respondents suggested that corporate clients had deferred spending decisions until after the autumn budget, while households were also hesitant about major purchases."
"The economy is doing little more than muddling through in the second half of the year,"
"The risk is that intense speculation about potential tax rises weighs heavily on consumer confidence and business sentiment, leading to another bout of stagnation."
The S&P Global composite PMI fell to 50.1 in September from 53.5 in August, its weakest reading since early spring, signaling a sharp slowdown in private-sector activity. Services PMI slipped from 54.2 to 50.8, losing momentum from a 16-month high, while the manufacturing PMI declined further into contraction at 46.2 from 47.0. Corporate clients deferred spending and households delayed major purchases amid uncertainty. Chancellor Rachel Reeves is due to deliver the budget on 26 November, with expectations of tens of billions in tax increases to rebuild fiscal headroom. Speculation over tax measures has chilled confidence and risks further stagnation.
Read at Business Matters
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