Rising interest rates will hit already weak UK economy, output shows

Latest snapshot of private sector activity reveals manufacturing and services struggling with rising costs

Interest rate increases expected later this year will weaken a UK economy that is already expanding at its slowest pace since it began emerging from the 2021 lockdown, the latest private sector activity snapshot suggests.

Although performing slightly stronger than the eurozone or the US, the latest monthly survey from the S&P Global/Chartered Institute of Procurement and Supply (Cips) showed both the UK services and manufacturing sectors struggled to cope with rising cost of living pressures.