UK growth slows to six-month low as Middle East war hits demand in World Economy News 25/03/2026 UK private sector growth slowed to a six-month low in March as the war in the Middle East weighed on customer demand and drove input costs to their highest level in over three years, according to flash PMI data released Tuesday. The S&P Global Flash UK Composite Output Index fell to 51.0 in March from 53.7 in February, marking the weakest expansion since September 2025. The Services Business Activity Index dropped to 51.2 from 53.9, while the Manufacturing Output Index declined to 50.1 from 52.5, both hitting six-month lows. The Flash UK Manufacturing PMI edged down to 51.4 from 51.7, reaching a three-month low. Despite the slowdown, all indices remained above the 50.0 threshold that separates growth from contraction. Total new work received by UK private sector firms declined for the first time in four months. Companies cited lower business and consumer confidence stemming from concerns about the Middle East conflict, alongside cautious spending patterns driven by rising inflation and the prospect of higher borrowing costs. Export sales fell for the first time since April 2025, led by the service sector. Firms reported postponed projects in the Middle East and reduced international travel. Manufacturers also saw an impact on global demand, though new export business increased marginally as some customers pre-purchased items amid supply chain concerns. Input price inflation accelerated sharply, reaching its highest level since February 2023. The manufacturing sector recorded the steepest rise in input costs since October 2022, with the Input Prices Index jumping by over 14 points since February—the biggest month-on-month acceleration since October 1992. Around 47% of manufacturers reported higher input costs in March, while only 2% saw a decline. Service providers also faced marked cost increases, with 38% reporting rises and 2% experiencing falls. Companies linked the surge to higher prices for fuel, transportation, and energy-intensive raw materials. Supply chain disruptions intensified, with around 25% of UK manufacturers reporting longer delivery times from suppliers, compared to just 2% seeing improvements. This marked the sharpest deterioration in vendor performance since July 2022. Firms cited extended shipping times from Asia due to re-routing via the Cape of Good Hope and production stoppages at petrochemical suppliers in the Middle East. Private sector firms raised their output charges sharply in March, with the increase marking the fastest pace since April 2025. Manufacturers showed a particularly steep acceleration, as companies passed on fuel surcharges and higher raw material costs to customers. Employment in the private sector fell for another month, with the rate of job shedding picking up from February and running slightly faster than the 2025 average. Companies attributed the cuts to squeezed margins and softer business activity growth. Business confidence for the year ahead dropped to its lowest level since June 2025. Optimism declined across both manufacturing and services sectors, with firms citing geopolitical risks from the Middle East war, cost of living concerns, and weak domestic economic prospects. Source: Investing.com 2026-03-25 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(i