"Tim Moore, the economics director at S&P Global Market Intelligence, remarked that the sector had experienced a 'marked slowdown in output growth,' as geopolitical tensions heightened risk aversion among clients."
"'Overall input cost inflation has accelerated sharply since February and was the strongest for 11 months, which was overwhelmingly linked to rising fuel and transportation bills,' Moore said."
"'Many firms also noted that suppliers had sought to pass on higher prices paid for energy, raw materials and shipping.'"
"'The inevitable conclusion from this morning's final PMI numbers for March is that the UK is in for another bout of stagflation, even if the conflict ends soon.'"
In March, the UK's services sector experienced a slowdown, with the S&P Global UK Services PMI falling to 50.5, its lowest in 11 months. The conflict in the Middle East negatively impacted business and consumer confidence, leading to reduced spending and postponed investments. Export demand declined significantly, and rising energy costs further pressured companies. Input cost inflation accelerated sharply, primarily due to increased fuel and transportation expenses. Analysts warn that the UK may face stagflation, with potential recession risks if geopolitical tensions persist.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]