UK economy faces a rising threat of recession

London: The UK economy has been hit hard again by an unprecedented rise in inflation in recent days. The index, which had recorded growth in industry and consumer demand, has fallen sharply. Besides, retail sales in the UK market have also come down and the percentage of income held by citizens has also reached a record low. Analysts and the media have claimed that all these factors signal a slowdown in the UK economy.

A few days ago, inflation in the United Kingdom recorded a four-decade high. Brexit and the Russia-Ukraine conflict were the two main factors behind the rise in inflation. The Russia-Ukraine conflict has sent skyrocketing fuel, food and housing prices in the United Kingdom, with ordinary citizens feeling the brunt of it. It is intensifying daily and it is becoming clear that United Kingdom’s industrial sector has not escaped from it.

Moreover, new reports have emerged on the state of the UK economy following the inflation index. It seems to have affected everything, including the British industry, retail sales, demand for goods, consumer purchasing power, and citizen income. Indexes, which show an increase in demand and output in the industrial sector, fell to 50.8 and 49.6, respectively. The decline in new demand was the lowest in a year. The manufacturing sector index is at its lowest level in two years.

The retail sector in the United Kingdom has declined by four per cent in the last seven months. Rising inflation has reduced food spending by about 1.5 per cent per month. While inflation is soaring, the salaries of ordinary citizens are not increasing much and the impact is on the gross domestic product.

Furthermore, the income level held by UK citizens has fallen and is expected to fall further in the next few months. According to a survey conducted by GFK, consumer confidence has come down to minus 41 degrees. Analysts say that these factors indicate that the British people will face a ‘cost of living crisis’ and a subsequent economic downturn. The media has claimed that the government is not taking appropriate steps to curb inflation.