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The Guardian - UK
The Guardian - UK
Business
Larry Elliott Economics editor

UK economic recovery at risk from rising inflation and waning business confidence

United Kingdom SP Global Ukraine
Staff work on a new train carriage at the Alstom train plant in Derby, England.
In general, UK manufacturing has endured its toughest time since the lockdown of early 2021. Photograph: Fabio De Paola/The Observer

Britain’s recovery from the Covid-19 pandemic is being put at risk by the escalating price pressures and blow to business confidence caused by Russia’s invasion of Ukraine, the latest snapshot of the economy has shown.

The flash estimate of activity from S&P Global and the Chartered Institute of Procurement and Supply (Cips) found the UK’s service sector growing rapidly but optimism about the future at its weakest in almost 18 months.

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