Each month, the Bank of England's regional network of agents go out and ask companies how they feel about the current economic climate. This survey is then collected into a survey that scores sentiment across a number of key variables.
The recent survey makes uncomfortable reading. The Bank of England's agents are picking up clear signs of both continuing inflationary pressure and a slowdown in economic activity.
The price pressures are unmistakable.
Meanwhile, retailers are reporting a slowdown. It is more evidence of declining consumption. Households are being hit on several sides; higher prices, zero wage growth and higher debt servicing costs. It all adds up to a hard time for retailers.
Tighter credit conditions is playing havoc with investment plans.
Manufacturing and export-based firms are also bracing themselves for a slowdown.
Slower growth, more inflation, that is called stagflation.