According to the most recent private sector activity snapshot, the UK economy will grow at its slowest pace since it emerged from the 2021 lockdown this year.

Despite slightly outpacing the eurozone and the United States, the UK services and manufacturing sectors were unable to keep pace with rising costs of living.

The first contraction in manufacturing output since the pandemic began in May 2020 was caused by rising commodity prices.

As a result of staff shortages and rising consumer prices, many companies reported that wage pressures had continued to rise, even as commodity prices fell.

In response to the S&P/CIPS purchasing managers' index, Threadneedle Street is likely to tighten policy at a time when the economy is at its most vulnerable in 17 months.

For this reason, the output index fell from 53.7 to 52.8 in July, as more work was outsourced in June than July.

In the coming months, the Bank of England will raise interest rates in an effort to control inflation, which will weaken demand growth.

In the last quarter century, the Fed has never raised interest rates at a time when business growth has been so weak, according to him.

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