UK business activity cools as inflation pressure ramps up, PMI shows

Growth in British business activity cooled this month and inflation pressure built, a survey showed on Wednesday, an awkward backdrop for finance minister John Healey ahead of his first budget next month.

The S&P Global UK Services Purchasing Managers' Index (PMI) fell in September to 51.7 from 52.5 in August, a three-month low, according to "flash" or preliminary data. A Reuters poll of economists had pointed to a reading of 52.0.

Prices charged by services companies, the backbone of Britain's economy, rose at the fastest pace in four months. They also reported accelerating cost pressures following a rise in energy prices stemming from the escalating war in Iran.

Data company S&P Global said its survey pointed to quarterly economic growth of around 0.1%, compared with in the second quarter.