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UK Businesses Brace for Deepening Recession, S&P Global Says

  • PMIs steady for May but point to contraction in coming months
  • Economy is ‘running on empty’ with inflation surging
A closed coffee shop in the town centre in Burnley, UK. 

A closed coffee shop in the town centre in Burnley, UK. 

Photographer: Anthony Devlin/Bloomberg

UK businesses are bracing for a deeper economic slump in the third quarter as inflation eats into profits and hits the spending power of consumers.

S&P Global said its purchasing manager index held at 53.1 in June while a gauge of new order volumes fell at the sharpest pace since the pandemic recovery started in March 2021. Companies reported rising pay pressures and increasing concerns about fuel and energy bills.