Growth in British business activity cooled this month and inflation pressure built, a survey showed on Wednesday, an awkward backdrop for finance minister John ​Healey ahead of his first budget next month.

The S&P Global UK Services ‌Purchasing Managers’ Index (PMI) fell in September to 51.7 from 52.5 in August, a three-month low, according to “flash” or preliminary data. A Reuters poll of economists had pointed to a reading of 52.0.

Prices charged by ​services companies, the backbone of Britain’s economy, rose at the fastest pace ​in four months. They also reported accelerating cost pressures following a rise ⁠in energy prices stemming from the escalating war in Iran.

Data company S&P Global said ​its survey pointed to quarterly economic growth of around 0.1%, compared with 0.4% in ​the second quarter.

Healey has been trying to strike an upbeat tone over Britain’s economic prospects after a run of surprisingly strong business and consumer data since Prime Minister Andy Burnham took power in ​July.

But economists say soaring government borrowing costs and rising inflation pressure threaten to cloud ​the outlook.

“September is seeing a worrying combination of disappointingly sluggish economic growth and intensifying inflationary pressures, ‌with ⁠subdued business confidence and high costs meanwhile continuing to discourage hiring,” said S&P Global’s chief business economist, Chris Williamson.

“While the upturn in the survey’s price gauges suggest the Bank of England looks likely to keep a hawkish bias, the worryingly lacklustre pace of ​business growth underscores the ​risk to the ⁠economy from higher borrowing costs.”

Financial markets on Tuesday pointed to a roughly 60% chance that the BoE will raise interest rates on ​November 5, the week after Healey delivers his October budget.

The ​PMI did, ⁠however, add to positive news for Britain’s manufacturing sector, a day after the Confederation of British Industry’s gauge of orders hit a more than three-year high.

The flash manufacturing PMI rose to ⁠52.0 in ​September from 51.7 in August, helped by rising ​domestic orders. Optimism in the sector hit a seven-month high.

The composite PMI, which combines the manufacturing and services ​surveys, fell to 51.7 in September from 52.5.