UK stagnation forecast as factory output slumps with falling demand and rising prices

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UK stagnation forecast as factory output slumps with falling demand and rising prices
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Weaker demand, labour and supply shortages, higher costs drive manufacturing output to lowest level since start of pandemic as latest figures show global economic growth slows in major economies.

UK economic activity has dropped to a new low as factory output slumped on weaker demand, labour and supply shortages, according to an influential survey.

Britain’s slowdown in overall growth was driven by a slump in manufacturing­ output from UK factories.Annabel Fiddes, at S&P Global Market Intelligence, said: “The UK private sector moved closer toin August, as mild growth of activity across the service sector only just offset a deepening downturn at manufacturers.

Firms reported “reduced customer demand, the delayed delivery of inputs and labour shortages” for the month.

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