S&P Global: Middle East conflict suppresses UK economic growth

MetaMuskRat · 2026-03-26T17:59:37+00:00

Affected by the Middle East conflict, the UK economic activity has slowed down, with the March Composite Purchasing Managers' Index (PMI) dropping to 51.0, the lowest in six months. Both the services and manufacturing sectors show signs of weakness, with new order volumes declining for the first time in four months, and businesses and consumers' willingness to spend decreasing.

MetaMuskRat

2026-03-26 17:59:37

Abstract generation in progress

People’s Financial News, March 24 — Due to rising costs and suppressed demand caused by the Middle East conflict, economic activity in the UK has significantly slowed down. Data released by S&P Global on the 24th shows that the key indicator of the UK’s economic expansion rate in March dropped to its lowest level in six months. The data indicates that the UK’s composite Purchasing Managers’ Index (PMI) preliminary reading for March was 51.0, below February’s 53.7, marking the lowest in six months.

Industry-wise, the service sector has cooled noticeably, with the services PMI falling from 53.9 last month to 51.2; the manufacturing PMI was 51.4, the lowest in three months. Meanwhile, the growth rate of manufacturing output has slowed significantly, approaching stagnation. S&P Global’s survey shows that the UK’s private sector experienced a decline in new orders for the first time in four months in March.

Businesses generally report that ongoing Middle East conflicts have increased uncertainty, raised costs, and tightened financing conditions, which have suppressed both corporate and consumer spending intentions. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said that the Middle East conflict has had a clear impact on the UK economy, “not only pushing up inflation but also restraining economic growth.” (Xinhua News Agency)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes