UK Private Sector Output Falls to 6-Month Low on Staff Shortages, Supply Constraints

Source: IHS Markit

The United Kingdom’s private sector output weakened to a six-month low in August, as staff shortages and supply constraints weighed on business during the period.

• The UK Composite Output Index fell for the third straight month to 55.3 in August. This is also the slowest expansion since growth was resumed in March.
• The Service Business Activity Index also declined to a six-month low of 55.5, marking the steepest decline since July.
• Incidences of reduced output were 14 times higher than usual, and the series high since data collection started in 1998.
• Backlogs growth was the weakest since April, while new order growth posted a slight moderation.
• Job creation hit a record-high growth after the service sector hit a series-high in the speed of hiring.
• The Manufacturing Output Index fell to a six-month low of 54.1, while the Manufacturing PMI declined to a five-month low of 60.1.