2023-06-23 10:39:35
normal
June 23, 2023
14:39 pm
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 following the Bank of England raised interest rates sharply and said it was ready to do more to curb inflation.
An initial reading, Friday, showed that the Standard & Poor’s Global Composite Purchasing Managers’ Index, which covers business in the services and manufacturing sectors, fell to a three-month low of 52.8 points in June, down from 54 points in May, affected by the fulfillment of orders. New growth was the weakest since January, with factories facing difficulties.
Chris Williamson, chief business economist at Standard & Poor’s Intelligence, said the survey indicates the economy has lost momentum following a brief growth spurt in the spring and appears set to weaken further in the coming months.
He added, “It is noticeable that consumer spending on services, which was the main driver of growth in the spring, is now showing signs of stalling.” He attributed this to high interest rates, inflation and concerns regarding the economic outlook.
The preliminary reading of the survey showed that the British services sector grew at the slowest pace in three months, and the manufacturing sector contracted at the most pace in six months.
On Thursday, the Bank of England raised interest rates for the thirteenth time in a row, to 5%, a sharp increase from 0.1% at the end of 2021.
The Bank of England is expected to continue raising borrowing costs in a bid to tackle inflation, which hit 8.7% in May.
(Archyde.com)
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