• UK Manufacturing PMI rose to 44.2 in September, above expectations of 43.0.
• Services PMI in the UK fell to 47.2 in September, a big miss.
• GBP/USD consolidates losses around 1.2250 on mixed UK business PMIs.

The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) unexpectedly advanced to 44.2 in September versus the 43.0 expected and, 43.0 - August’s final print.

Meanwhile, the Preliminary UK Services Business Activity Index reached a 32-month low of 47.2 in September, compared with a 49.5 final print for August and the 49.2 expected figure.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “The disappointing PMI survey results for September mean a recession is looking increasingly likely in the UK.”

“The steep fall in output signaled by the flash PMI data is consistent with GDP contracting at a quarterly rate of over 0.4%, with a broad-based downturn gathering momentum to hint at few hopes of any imminent improvement,” Williamson added.

FX implications

GBP/USD is off the multi-month lows, still shedding 0.35% on the day to trade at 1.2250, as of writing.