Sterling slips in slowdown fuelled by energy prices

THE pace of Britain's gathering economic crisis was underlined today by a slowdown in business activity as sterling fell once again and wholesale energy prices remained close to record highs.

- Simon English, Mark Banham and Michael Hunter

The benchmark composite PMI indicator fell in August to 50.9, from 52.1 in July, with manufacturing particularly weak at 46. The services sector held up better with the index slipping only from 52.6 to 52.5. A reading of 50 points is equivalent to no growth.

Dr John Glen, chief economist at CIPS, which helps compile the PMI data, said: "A disappointing pace of business activity growth across the private sector, with the weakest rise in output levels for a year-and-a-half and the headline index moved another step closer to the no-change 50.0 mark."