Britain’s private sector growth stopped in March, the first month of the Iran war, according to a recent survey.

The pause follows a sharp loss of momentum, with analysts warning that the slowdown could trigger stagflation—a blend of stagnant growth and rising inflation that threatens long‑term economic health.

The survey’s findings come as investors weigh the war’s impact on supply chains and consumer confidence, raising fears that the UK’s business environment could deteriorate further.

For companies, the flatline signals a tightening credit market and a possible slowdown in capital spending, which could ripple through sectors from manufacturing to services.

Key takeaway: a stalled private sector growth curve amid geopolitical tension signals a risk of persistent inflationary pressures, compelling firms and policymakers to reassess risk‑mitigation strategies.