“The UK economy retreated in August. And business surveys, including our own, have turned sharply downwards since the summer and there is an increasing chance that the UK entered a downturn during the third quarter.
“Ongoing supply challenges, sharp rises in energy prices, and a tight labour market mean businesses continue to face significant cost pressures, but the Government’s energy price caps provide welcome breathing space.
“Rising interest rates are adding further to costs facing businesses and households. In the run-up to the medium-term fiscal plan, business will be looking for reassurance that policy measures will be delivered against the backdrop of a stable macroeconomic environment.”