S&P Global Companies: Middle East Conflict Suppresses UK Economic Growth

Due to the rising costs and suppressed demand caused by the Middle East conflict, economic activity in the UK has significantly slowed down. Data released by S&P Global on the 24th showed that an important indicator measuring the pace of UK economic expansion in March dropped to its lowest level in six months. The data shows that the preliminary value of the UK's composite Purchasing Managers' Index (PMI) in March was 51, lower than February's 53.7, and the lowest in six months. In terms of industries, the service sector saw a significant cooling down with the service sector PMI dropping from 53.9 last month to 51.2, while the manufacturing PMI was 51.4, the lowest level in three months. At the same time, the growth rate of manufacturing output has significantly slowed down and is close to stagnation. S&P Global's survey shows that the total volume of new orders in the UK private sector in March decreased for the first time in four months. Companies generally reported that the delayed Middle East conflict has led to increased uncertainty, cost pressures, and a tightening financing environment, leading to suppressed willingness for both businesses and consumers to spend. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said that the Middle East conflict has had a significant impact on the UK economy, "pushing up inflation while also suppressing economic growth."