LONDON (Reuters – British manufacturing activity grew at the lowest rate since January 2021 as consumers struggled to cope with a growing cost of living, a survey revealed on Wednesday.

The final estimate of the S&P Global (NYSE:) UK Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May from 55.8 in April, unchanged from a preliminary “flash” reading.

“Growth in the UK manufacturing sector eased during May, as rates of expansion in output, new orders and employment all decelerated,” S&P Global, which produces the PMI, said.

The cost of manufacturing and selling prices rose again last month at an impressive pace, though it was slightly slower than the flash reading suggested.

The Institute of Directors also released a separate report that showed business leaders’ confidence in the economic recovery fell to their lowest level since October 2020. They were most concerned about inflation which reached an all-time high of 9% in March, a mark that was 40 years old.

A survey of British industry businesses revealed that they are not expecting any significant growth in the coming three months.

The PMI indicated that manufacturing exports, which were a weakness in Britain’s recovery after the COVID-19 pandemic had continued to struggle.

The May contracting of new orders from overseas was the fastest since June 2020. Respondents pointed out Brexit difficulties, transportation delays, and the conflict in Ukraine.

Contrary to the larger service sector, manufacturing output is still below its pre-pandemic levels and was at 1.0% in March according to official data.