British factory orders contracted this month at the fastest rate since September 2020, according to a survey on Thursday.
The Confederation of British Industry’s monthly balance of total new orders slid to -41 in May from -38 in April.
A gauge of expected selling prices rose to its highest since February 2023.
"Against an increasingly uncertain global backdrop, the conflict in the Middle East is feeding through to higher energy costs and renewed supply chain disruption," said Cameron Martin, CBI senior economist.
The Bank of England is watching whether to raise interest rates to snuff out inflationary pressures sparked by the energy price shock.
