Factory slump causes UK economy to stagnate in August -PMI

Corus steelworks is seen at Teesside, northern England January 26, 2009. REUTERS/Nigel Roddis/File Photo

LONDON, Aug 23 (Reuters) – Growth in Britain’s private sector slowed to a crawl in August as factory output fell and the larger services sector eked out only a modest expansion, adding to signs that recession may be looming, a closely watched survey showed on Tuesday.

The S&P Global/CIPS Purchasing Managers’ Index (PMI) composite flash estimate dropped to 50.9 in August from 52.1 in July, its lowest since February 2021 and close to the 50 level that separates growth from contraction.

Economists polled by Reuters had forecast the index would fall less sharply to 51.1.

While activity in the services sector almost held at July’s pace, the manufacturing component tumbled to 46.0 in August from 52.1 in July, its…