UK business activity raising recession risk

British business activity shrank in August, slammed by weakness in the key construction, manufacturing and services sectors, as the economy suffers from Brexit turmoil, a key survey showed yesterday.

The purchasing managers’ index (PMI) for all UK sectors dropped to 49.7 from 50.3 in July, according to IHS Markit, which compiles the data.

A figure below 50 indicates contraction.

“The PMI surveys are so far indicating a 0.1-per cent contraction of GDP in the third quarter,” which would mean Britain had fallen into recession, noted Chris Williamson, chief business economist at IHS Markit.

Britain’s economy unexpectedly shrank in the second quarter of the year.

The official definition of recession is two quarters of economic contraction in a row.

 

UK business activity raising recession risk

British business activity shrank in August, slammed by weakness in the key construction, manufacturing and services sectors, as the economy suffers from Brexit turmoil, a key survey showed yesterday. The purchasing managers index (PMI) for all UK sectors dropped to 49.7 from 50.3 in July, according to IHS Markit, which compiles the data. A figure below 50 indicates contraction. The PMI surveys are so far indicating a 0.1-per cent contraction of GDP in the third quarter, which would mean Britain had fallen into recession, noted Chris Williamson, chief business economist at IHS Markit. Britains economy unexpectedly shrank in the second quarter of the year. The official definition of recession is two quarters of economic contraction in a row.