Economy jolted by Iran war. Inflation bubbles up and service companies reduce employment.

Growth in the largest part of the economy slowed in March as the Iran war pushed up oil and other commodity prices, prompting companies to reduce employment. The conflict-driven rise in energy and commodity prices is adding inflationary pressure and points to a rockier near-term growth path until the geopolitical situation stabilizes.

Analysis

Growth in the largest part of the economy slowed in March as the Iran war pushed up oil and other commodity prices, prompting companies to reduce employment. The conflict-driven rise in energy and commodity prices is adding inflationary pressure and points to a rockier near-term growth path until the geopolitical situation stabilizes.