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[News] Indicator: The British economy is faltering and inflation pressures are still high


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Guest High King Eslam

A survey revealed that signs of a slowdown appeared in the British economy this month, and that inflation pressures remain high.

The survey was published a day after the Bank of England raised interest rates sharply and said it was ready to do more to curb inflation.

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An initial reading today, Friday, showed that the Standard & Poor's Global Composite Purchasing Managers' Index - which covers business in the services and manufacturing sectors - fell to its lowest level in 3 months at 52.8 points last June, down from 54 points in May. Last May, affected by the achievement of new orders, the weakest growth since last January, in light of the difficulties facing factories.

Chris Williamson, chief business economist at Standard & Poor's Intelligence, said the survey indicates the economy has lost momentum after a brief growth spurt in the spring, and appears set to weaken further in the coming months.

"It is noticeable that consumer spending on services - which was the main driver of growth in the spring - is now showing signs of faltering," he added.

He attributed this to high interest rates, inflation and concerns about the economic outlook.

The preliminary reading of the survey showed that the British services sector grew at the slowest pace in 3 months, and the manufacturing sector contracted at the most pace in 6 months.

On Thursday, the Bank of England raised interest rates for the 13th time in a row, to 5%, a sharp increase from 0.1% at the end of 2021.

It is expected that the Bank of England will continue to raise borrowing costs in an attempt to tackle inflation, which recorded 8.7% last May.

https://www.i3lam-al3arab.com/مؤشر-الاقتصاد-البريطاني-يتعثر-وضغوط-ا/

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