The UK is experiencing a "perfect storm" as PMI data shows political uncertainty amplifies the impact from the Middle East.

```htmlGolden Ten Data reported on May 21 that Chris Williamson, Chief Business Economist at S&P Global, stated that the UK economy is experiencing a “perfect storm” as intensifying political uncertainty further amplifies the impact of the Middle East war. In May, companies reported declining output, soaring inflation, supply shortages, and frequent layoffs. The PMI data for May indicates the economy shrank by 0.2% on a quarterly basis, a stark contrast to the strong growth seen earlier this year. The primary cause is the Middle East war, but businesses also pointed out that domestic political issues are worsening, increasing uncertainty and thus curbing consumption, hiring, and investment. The situation may deteriorate further in coming months, as preventive stockpiling has provided some support to manufacturing, but once warehouses are full, this support is bound to weaken. Meanwhile, as these costs are passed on to consumers, prices are soaring, suggesting a significant rise in inflation over the next few months. The combination of sluggish economic growth and persistent price pressures places the Bank of England in an extremely difficult predicament: on one hand, they desperately need to raise interest rates to curb inflation; on the other hand, doing so increases the risk of economic recession.```