adminThe UK’s economy may have tipped into recession following a downturn in the dominant service sector, according to closely-watched figures.
The IHS Markit/CPS purchasing managers’ index for services fell to a six-month low of 49.5 in September. The 50 level divides growth from expansion.
It suggests the economy shrank 0,1 percent in the three months to September, after a 0,2 percent fall in the previous quarter. Some experts urged caution, as official data last month eased recession fears.
Combined with even weaker manufacturing and construction purchasing managers’ indexes (PMI) earlier this week, September’s all-sector PMI sank to 48,8 from 49,7. This was its lowest since the month after the referendum decision to leave the EU in June 2016, and before that 2009.
“Coming on the heels of a decline in the second quarter, (this) would mean the UK is facing a heightened risk of recession,” said IHS Markit economist Chris Williamson.
A recession is normally defined as when an economy contracts over two consecutive quarters. — BBC.
Online Reporter