UK composite PMI drops to lowest since February 2021
PMI shows marginal growth in UK, contraction in euro zone
Price pressures ease but remain high
CBI and PMI data point to manufacturing recession

LONDON, Aug 23 Reuters Britain39;s private sector slowed to a crawl in August as factory output fell and the larger services sector eked out only a modest expansion, adding to signs that recession may be looming, a closely watched survey showed on Tuesday.

However, inflation pressure remained high and the approaching downturn was unlikely to keep the Bank of England from raising interest rates again next month, economists said.

The SP GlobalCIPS Purchasing Managers39; Index PMI composite flash estimate dropped to 50.9 in August from 52.1 in July, its lowest since February 2021 and close to the 50 level that separates growth from contraction.

Economists polled by Reuters had forecast the index would fall less sharply to 51.1.

While activity in the services sector almost held at July39;s pace, the manufacturing component tumbled to 46.0 in August from 52.1 in July, its lowest since May 2020 in the depths of the COVID19 pandemic and below all forecasts in a Reuters poll.

Separate figures from the Confederation of British Industry, also released on Tuesday, showed the first fall in factory output since February 2021 and the weakest order book since April that year.

Waning customer demand amid the weaker economic outlook, and shortages of both staff and inputs, were…