A new survey by S&P Global Insight indicates that in the UK, soaring interest rates have caused business growth to slow to the lowest levels seen since January, leading the report to label the British economy, “close to stalling.”

The report notes that data shows that a “considerable slowdown” has hit private sector activity in the UK as sluggish demand, spiraling inflation, and rapidly rising borrowing costs have driven the PMI Composite Output Index to the weakest reading in six months.

The most recent PMI reading dropped from the previous reading of 52.8 in June, to 50.7, marking the lowest reading since January. On the scale, a reading of 50 indicates neither growth nor contraction, with readings above 50 indicating growth, and readings below 50 indicating contraction.

Chris Williamson, the chief business economist at S&P Global Market Intelligence, noted that the trend will be sure to ignite recession worries, in light of the “gloomy” outlook overall.

He said, “Forward-looking indicators, such as order books inflows, levels of work-in-hand and future business expectations, all point to growth weakening further in the months ahead, adding to a risk of GDP falling in the third quarter.”

British households have been hit hard by rapidly rising interest rates and increased costs of living, which have forced millions of Britons to reduce their expenditures. At the same time, manufacturers have been cutting their production output as orders from domestic and export markets have plunged, according to the data.