LONDON, Sept 23 Reuters British businesses reported a slowdown in growth this month as some firms feared higher taxes, according to a survey that also showed waning price pressures, potentially encouraging the Bank of England to consider cutting interest rates again.

However, economists broadly saw the data as pointing to a return to a more sustainable growth pace after a postrecession bounce earlier in the year in contrast to a much weaker performance in the euro zone this month.

The preliminary estimate of the UK SP Global Composite Purchasing Managers39; Index fell to 52.9 from 53.8, below all forecasts in a Reuters poll of economists but still well above the 50 level that separates growth from contraction.

Data firm SP Global said the figures were consistent with Britain39;s economy expanding at a quarterly rate of 0.3, about half the pace of earlier this year, but still stronger than for much of the past two years.

Sterling strengthened against the U.S. dollar on the data, reversing some of the losses it sustained after the release of euro zone data earlier on Monday which pointed to a contraction in the economy.

The fall in September39;s composite flash PMI is not a sign that the economy is on the cusp of another downturn, but instead is further evidence that real GDP growth has slowed towards a more normal rate in Q3 after the burst of growth in the first half, said Alex Kerr, UK economist at Capital Economics.

Input costs faced by companies rose at a…