PMI from S&P Global Market Intelligence showed UK manufacturing cost pressures
rose in September for the first time in four months, while output growth slowed
to its weakest since March. Factory input costs rose at the fastest pace since
June and selling-price inflation accelerated. S&P Global Market Intelligence
director Rob Dobson said the key change in September was price indicators
flipping from showing easing to rising. BoE Governor Bailey and other senior
officials warned a war involving Iran could trigger an energy-price spike and
amplify broader inflation; investors expect the BoE to raise rates in November.
Business confidence slipped below August's six-month high. Employment expanded
for a sixth month—supported by improved new orders and reduced backlogs—but
hiring growth cooled from August's two-year high.