Due To A Company Shortage Outbreak, The UK's Recovery Has Been Delayed.

The researchers said that any number above 50 indicates growth, but recovery from the pandemic is losing momentum. Duncan Brock, director of the CIPS group, said the figures were a "strong warning." He said the "unbelievably sharp slowdown in overall activity" suggested that the accelerated growth rate seen in early summer was "unsustainable."

"Although measures to contain Covid-19 have dropped to their lowest levels since the pandemic began, the rising number of virus cases is holding back a lot of spending, especially from consumers, and stunting growth through downsizing and supply shortages. So said IHS Markit economist Chris Williamson.

"Delays in deliveries have risen to levels only once in the first few months of the pandemic, and the number of companies reporting production cuts due to staff or material shortages is much higher than ever before in research history. "

The company complained that self-isolation requirements for people with Covid contacts made it difficult to retain staff. 

However, this rule was lifted on August 13 for people who have been vaccinated twice. Kieran Tompkins, the assistant economist at Capital Economics, said the latest study showed the recovery was slowing more than previously thought.

"The economy struggled to recover in August despite weakening pandemic," he said. He added that this creates a "reverse risk" for projections that the economy will return to pre-pandemic levels in October. Meanwhile, another study showed that output growth slowed in the three months to August but remained steady by historical standards.

According to the latest monthly survey by CBI Industrial Trends, inventories fell to fresh lows for the third month in a row. "Early signs of the data suggest that activity growth may have peaked," said CBI chief economist Alpes Paleja.