Analysis: UK PMI sparks concerns of recession.

Thomas Pugh of RSM U.K. stated in a report that a survey of British companies has shown that if the Iran war continues for a longer period, the UK may experience a recession. He said, "The inevitable conclusion drawn from the final March PMI data released this morning is that even if the conflict ends quickly, the UK will face another round of stagflation." PMI data indicates a further decrease in output, faster increase in input prices, and the conflict seems to have had an impact on demand and employment. He said, "The direct impact on PMI data is concerning, as geopolitical events usually take time to filter through." He added that the duration of the conflict and its impact on output prices make it more likely for the Bank of England to raise interest rates this year.