STORY
British companies have reported their most widespread fall in activity for more than a year, according to survey data cited by Reuters. The report said business activity had been hit by the economic effects of the Iran war and by political uncertainty in the UK.
The Guardian reported that the S&P Global purchasing managers’ index fell to 48.5 in May, below the 50 mark that separates growth from contraction and below economists’ expectations. The figures suggested pressure in the services sector, alongside a wider weakening in business confidence.
The data adds to pressure on ministers as they try to manage inflation, energy costs and uncertainty over the public finances. The Government has announced targeted cost of living and industrial support measures, but economists and businesses have warned that geopolitical instability could continue to affect prices, investment and consumer demand.