UK composite PMI at lowest in 17 months
Input and output price growth weakens
Other data fall in shopping, record low consumer morale
Investors rein in bets on big Bank of England rate hike

LONDON, July 22 Reuters Britain39;s businesses grew at their slowest pace in 17 months in July and inflation pressures eased, according to an industry survey that might reduce pressure on the Bank of England to deliver a biggerthanusual interest rate hike next month.

The preliminary version of the SP Global39;s Purchasing Managers39; Index PMI, covering services and manufacturing firms, fell to 52.8 the lowest since February 2021 from June39;s 53.7.

Chris Williamson, chief business economist at SP Global Market, said the reading was consistent with quarterly economic growth of 0.2 and there were signs from order books that the slowdown would worsen.

The concern is that rising interest rates, as the Bank of England seeks to control inflation, will cause demand growth to weaken further in the coming months, Williamson said.

To be hiking interest rates at a time of such weak business growth is unprecedented over the past quartercentury of survey history.

The central bank has said it is ready to raise interest rates by a biggerthanusual halfpercentage point if it sees signs of persistent inflation pressures.

Its next scheduled rates announcement is on Aug. 4.

Data from Refinitiv showed that investors had pared back their bets on a 50 basispoint rate hike by the BoE to…