London, April 22 (SANA) British companies reported a record rise in production costs this month, according to a new economic survey, highlighting renewed inflationary pressures that could feed into prices amid global energy disruptions linked to the Middle East conflict.
Data from S&P Global showed that input cost inflation in the UK’s preliminary composite Purchasing Managers’ Index (PMI) recorded its largest monthly increase in 28 years, reaching levels last seen during the inflation spike in late 2022.
The rise comes as businesses continue to face pressure from energy-related volatility and supply chain disruptions, raising concerns about persistent inflation.
The Bank of England is closely monitoring the trend, warning that higher energy prices could gradually feed through to broader inflation. However, weakness in the labor market may help limit further increases.
Meanwhile, the composite PMI, which tracks activity in manufacturing and services, rose to 52 in April from 50.3 in March, exceeding expectations of a slowdown to 49.9 and indicating modest expansion.
The services index rose to 52.0, while the manufacturing index climbed to 53.6, its highest level since May 2022, despite rising input costs and ongoing supply chain pressures.
Overall, the data suggest the UK economy remains vulnerable to external energy shocks linked to geopolitical tensions, despite earlier signs of stabilizing growth.
R.H
