Alex Kerr at Capital Economics said the PMI decline was not a sign that the economy was on the cusp of another downturn. “It 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 of the year.” He predicted one more cut in base rate this year, in November, before further reductions next year. The Bank of England reduced the benchmark interest rate from 5.25 per cent to 5 per cent in August.