UK economy close to recession after stagnant service sector data

Read More On City AM

Growth in the services industry lost momentum in August, indicating an overall contraction in the economy across all sectors and a drop in GDP, leaving the UK one step away from a recession.

The service sector’s purchasing managers’ index (PMI) dropped to 50.6 in August, down from 51.4 in July. Any figure under 50 indicates a contraction. Coupled with lacklustre manufacturing and construction output, the UK’s all-sector PMI dropped to 49.7 in August – falling below the predicted 50.5.

The drop in all-sector PMI is consistent with a decline in GDP of 0.1 per cent in the third quarter. GDP had already declined 0.2 per cent in the second quarter; two consecutive contractions mean the economy is in recession.

Read the full story here.

PHP Code Snippets Powered By :