Tuesday 24 May 2022 11:04 AM UK economy has ALREADY ground to a halt and is 'knocking on the door' of ... trends now
The UK economy has almost ground to a halt in the face of soaring inflation, according to an influential survey.
It was found that private sector growth slumped this month as the cost-of-living crisis began to hit Britons' spending ability.
Experts even warned that 'worse is to come' and 'recession is knocking on the door'.
The findings will increase fears of stagflation hitting Britain, as high inflation is coupled with a shrinking economy.
The S&P Global / CIPS Flash United Kingdom Purchasing Managers Index (PMI), which is based on a survey of around 1,300 companies, hit 51.8 this month.
This was a 15-month low and down from 58.2 in April. Anything above 50 is considered growth.
Analysts had expected the figure to hit 56.5 in May.
Boris Johnson was today due to hold a Cabinet meeting on the cost-of-living crisis as the Prime Minister and Chancellor Rishi Sunak face ever-increasing pressure to deliver a fresh package of help for struggling households.
The S&P Global / CIPS Flash United Kingdom Purchasing Managers Index (PMI), which is based on a survey of around 1,300 companies, hit 51.8 this month
The survey found service providers were suffering the greatest loss of momentum this month, with respondents noting a slowdown in demand. Meanwhile, manufacturers reported supply chain disruption due to the Ukraine war and rising inflation
The survey revealed a sharp slowdown in private sector activity this month as firms battled with inflation and uncertainty around the world, including the Ukraine war.
The early data for May showed that firms witnessed the fastest rise in operating expenses since the index was first launched in January 1998.
Growth projections were the lowest since May 2020 - which came in the middle of Britain's first Covid lockdown - as firms
