UK Business Activity Shrinks as Economy Faces 'Perfect Storm' The latest snapshot of the UK's economic health reveals a worrying trend: business activity is shrinking at an alarming rate due to rising inflation and supply chain disruptions.
The "perfect storm" narrative has become all too familiar in recent months, but this time it's not just the war in Ukraine or Brexit related uncertainty that are to blame – although those factors still linger.
The Bank of England now faces a sharp trade off between weaker growth and stubbornly high inflation.