World surveys show business activity contracting
Little hope of a turnaround anytime soon
Inflation reaches multidecade highs in many parts of world

LONDON, Aug 23 Reuters The global economy is increasingly at risk of sliding into recession, surveys showed on Tuesday, as consumers faced with generationhigh inflation rein in spending while central banks are tightening policy aggressively just when support is needed.

And supply chains yet to recover from the coronavirus pandemic have been further damaged by Russia39;s invasion of Ukraine and China39;s strict COVID19 lockdowns, hurting the manufacturing industry.

A myriad of purchasing managers39; surveys published on Tuesday from Asia to Europe to the United States showed business activity contracting and pointed to little hope of a turnaround anytime soon.

Put simply, it39;s the extremely high rates of inflation that is resulting in households having to pay more for the goods and services they have to buy which means they have less to spend on other items, said Paul Dales at Capital.

That39;s a reduction in economic output so that39;s what39;s driving the recession. Higher interest rates are playing a small part but really it39;s the higher inflation.

U.S. privatesector business activity contracted for a second straight month in August and is at its weakest in 18 months, with particular softness registered in the services sector. 

There is a 45 chance of a U.S. recession within a year and 50 within two years,…