UK Economy Nears Flatline as IMF Warns on Debt Levels

The UK economy is already nearly flatlining, according to latest PMI data, which showed activity at its lowest levels in three months amid mounting inflationary pressures.

The S&P Global flash UK composite PMI recorded a reading of 51.7 for September, down from 52.5 in August, indicating roughly equivalent GDP growth of 0.1 per cent in a quarter.

The rate of input price inflation rose for the second month in a row to reach its highest since June, caused by soaring energy and fuel prices driven by the Iran war.

Meanwhile, the IMF has issued a stark warning about debt levels in Britain and other major states, insisting Governments must take 'tough' decisions to stabilise their books.