BRITAIN’S private sector companies witnessed a sharp slowdown in output growth during August amid worsening staff and supply shortages, according to a joint report released Monday. The headline seasonally adjusted flash composite output index stood at 55.3 in August, down from 59.2 in July, the slowest expansion of output since the private sector returned to growth in March, said the report published by IHS Markit, a London-based global information provider, and the Chartered Institute of Procurement & Supply (CIPS), a British-based global procurement and supply organization. “Although the purchasing managers’ index (PMI) indicates that the economy continues to expand at a pace slightly above the pre-pandemic average, there are clear signs of the recovery losing momentum in the third quarter after a buoyant second quarter,” said Chris Williamson, chief business economist at IHS Markit. Williamson said he believes that despite the lift of COVID-19 restrictions, “rising virus case numbers are deterring many forms of spending, notably by consumers, and have hit growth via worsening staff and supply shortages.” “An abnormally large slowdown in overall activity in August offers a stark warning to the UK economy that the accelerated levels of growth we’ve seen earlier this summer are not sustainable,” said Duncan Brock, group director at CIPS. “It was the slowest output expansion for six months, and the worst shortages of staff and materials on record are mostly to blame,” Brock added. (Xinhua) | 