The UK’s economic downturn has worsened in October, with growth in the private sector slowing to a 21-month low, according to new figures. Output declined for the third month running following a period of political turbulence that has dragged on the financial markets.
The influential S&P Global/ CIPS flash UK composite purchasing managers index (PMI) showed a reading of 47.2 in October, below September’s 49.1 reading. It also fell short of the 48.0 market consensus, although analysts at Pantheon Economics had predicted a more accurate PMI of 47.0 reflecting political and economic uncertainty taking its toll on private sector businesses.
Any score below 50 is considered a contraction for the economy, while anything above is seen as growth. The index showed that there was a steep fall in output in October as manufacturers continued to grapple with supply shortages and a slowdown in demand.
