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 InflationA broad rise in prices that reduces money’s purchasing power. Central banks watch inflation because it affects interest-rate decisions.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.
