UK economic activity slows markedly in April amid rising inflation

by | Apr 22, 2022

Share this article

Economic activity in the UK slowed markedly in April amid worsening inflation, not least record rises in firms’ costs, and a gloomier outlook, the results of a batch of closely-followed surveys showed.
S&P Global’s ‘flash’ composite Purchasing Managers’ Index Composite Output Index fell from a March reading of 60.9 to 57.6 for April (consensus: 58.5).

The preliminary reading on the headline PMI for just the manufacturing sector in fact edged up from 55.2 to 55.3 (consensus: 54.0).

However, orders received by manufacturers nearly stalled, the survey compiler said, due to an increasing loss of exports.

 

The services PMI meanwhile declined from 62.6 to 58.3 (consensus: 60.0) and was at among the weakest since the lockdowns of early 2021.

According to Chris Williamson, chief business economist at S&P Global, firms’ “cautious” approach to hiring and spending in the face of cooling demand and gloomier outlook suggested that the slowdown in the economy had further to run.

“While the start of the year saw businesses in high spirits amid the reopening of the economy, this ebullient mood is being eroded by concerns about the rising cost of living, the Russia-Ukraine war, lingering pandemic disruptions and rising interest rates.”

 

Share this article

Related articles

UK inflation hits 40-year high of 10.1%

UK inflation hits 40-year high of 10.1%

Higher food prices helped push up inflation in September, official data showed on Wednesday, to a record 10.1%. According to the Office for National Statistics, the consumer price index rose by 10.1% in the 12 months to September, compared to August's rate of 9.9%....

Reports of delay to bond sale ‘inaccurate’ – BoE

Reports of delay to bond sale ‘inaccurate’ – BoE

The Bank of England appeared to deny reports on Tuesday that it wanted to delay selling billions of pounds of government bonds. The central bank acquired £838bn of gilts during its quantitative easing programme. It had intended to start selling them on 6 October, but...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode