The latest PMI data showed that average cost burdens rose substantially, but the pace of inflation moderated to a 10-month low.

The S&P Global/CIPS purchasing managers’ index fell to 50.9 from 52.6 in July, signalling the slowest rate of expansion since February 2021.

The rate of new business growth remained much weaker than previously. While businesses said that underlying demand continued to rise, many added that high inflation constrained client budgets. 

Cost pressures increased due to rising energy, fuel, and utility bills, as businesses signalled another steep rise in costs.