Services slowdown hits recovery
The fragility of the UK recovery was highlighted today after new figures showed a slowdown in growth in the powerhouse services sector.
The Markit/CIPS purchasing managers’ index (PMI) for services activity, in which a reading above 50 represents growth, came in at 52.2 in September, down from 53.7 the previous month, when the Olympics distorted the performance. With this week’s monthly surveys for the manufacturing and construction sectors also weaker, Markit said it was likely that the UK economy barely expanded in the third quarter, following nearly a year in recession.
The slower conditions meant services employment declined for the first time since last November, with many companies choosing not to replace leavers.