THE BOE’S CURRENT STANCE IN THE FACE OF THE INFLATIONARY THREAT 2/3

The latest PMI indices signal a definitive end to the post-election recovery, as the dynamic services sector stalls under the weight of high operating costs and fiscal uncertainty. While the construction sector has already plunged into contraction, the upcoming data for March is expected to reflect a broader collapse in business activity as service providers freeze spending in response to increased employer social security contributions.