LONDON, April 8 (Xinhua) -- Britain's business activity growth slowed sharply in March, edging close to stagnation as rising costs and delayed investment linked to the Middle East conflict weighed on the economy, according to the latest surveys from S&P Global.

The country's composite Purchasing Managers' Index (PMI) fell from 53.7 in February to 50.3 in March, marking the weakest expansion in six months and signaling only a marginal increase in overall private sector output, said a survey released by S&P Global Tuesday.

Sub-sector data pointed to a broad loss of momentum. The headline seasonally adjusted S&P Global UK Services PMI posted 50.5 in March, down from 53.9 in February and the lowest since April 2025. Manufacturing also lost steam, with the PMI easing to 51.0 from 51.7, while output declined for the first time in six months, according to earlier data.

Tim Moore, economics director at S&P Global Market Intelligence, said on Tuesday that UK service providers saw a sharp slowdown in March as the Middle East conflict prompted risk aversion and delayed investment.

"Stagflation risks appear to have increased," he added, noting that input cost inflation hit an 11-month high, driven by higher fuel, transportation, and raw material prices. Rising global uncertainty also weighed on business confidence, which has fallen sharply since January's 15-month peak.

A survey released by the S&P Global on Wednesday also showed conditions in the construction sector remained particularly weak. The construction PMI stood at 45.6 in March, staying below the neutral 50.0 value for the 15th consecutive month.

Rising input costs have added to the strain across sectors. Construction firms reported that the Middle East conflict had driven up fuel, transportation and raw material prices, putting significant pressure on operating margins and further dampening business performance. ■