Omega Management logo

UK economy on brink of recession as Truss takes over, figures show | Economics

Liz Truss will become the UK’s next prime minister with the economy on the brink of recession, according to figures that show private sector activity fell last month as businesses struggle with soaring costs.

The latest snapshot from S&P Global and the Chartered Institute of Procurement and Supply (Cips) revealed a “severe and accelerated” decline in manufacturing output in August, alongside weaker activity in the UK’s dominant service sector.

The monthly business survey, which is closely watched by the government and the Bank of England for early warning signs from the economy, found growing worries over soaring inflation and a marked reduction in confidence among firms.

According to the monthly health check from S&P Global and the Cips, cost pressures facing businesses remained at extremely elevated levels, linked to rising prices for energy and fuel as Russia’s war in Ukraine further drives up costs on the wholesale…

Read more…

Share on facebook
Share on twitter