UK economic recovery at risk from rising inflation and waning business confidence

UK economic recovery at risk from rising inflation and waning business confidence

Britain’s recovery from the Covid-19 pandemic is being put at risk by the escalating price pressures and blow to business confidence caused by Russia’s invasion of Ukraine, the latest snapshot of the economy has shown.

The flash estimate of activity from S&P Global and the chartered institute of procurement and supply (CIPS) found the UK’s service sector growing rapidly but optimism about the future at its weakest in almost 18 months.

Both the service and manufacturing sectors expanded in March, according to the survey of purchasing managers, but while the former put in its strongest performance for nine months, factories had their toughest time since the lockdown of early 2021.