UK’s stalling economy blamed on inflation and product shortages

UK's stalling economy blamed on inflation and product shortages

The UK’s economic recovery paused prior to the arrival of the Omicron variant of Covid and the dampening impact of the government’s plan B restrictions on consumer spending in the Christmas shopping period, a new survey shows.

Businesses put the blame for a decline in sales in the fourth quarter on spiraling inflation and shortages of imported goods, meaning that an expansion during the spring and summer ground to a halt, according to the British Chambers of Commerce’s quarterly survey.

In a message, the department said that many respondents to its survey of nearly 5,500 firms said that they were running low on cash and had scrapped investment plans to stay afloat into the new year.

Sales growth stalled as companies struggled with the “mounting headwinds” of inflation, a scarcity of skilled workers, and difficulties sourcing products from overseas, Suren Thiru, the BCC’s head of economics, said.

“The persistent weakness…

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