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UK close to recession.

 The UK economy edged closer to recession this month as political uncertainty, market turmoil and rising interest rates slowed economic activity, a closed watched survey showed. The flash composite purchasing managers’ index fell by more than expected to a 21-month low of 47.2, firmly below the 50 mark that separates growth from contraction. City economists had expected a reading of 48.1, down from 49.1 last month. Concerns over rising energy and food bills wore away appetite for visits to pubs and restaurants, weakening demand in the services sector, which accounts for the vast majority of UK output, experts said.



The sub-index measuring the services sector, which makes up 80 per cent of the economy, fell from 50 in September to 47.5 this month, moving into contraction territory for the first time since February 2021, according to the survey of 650 manufacturers and 650 service providers between October 12 and 20.

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  1. David31 October 2022 at 09:42

    Since the UK is so reliant on their services sector and that will go down a lot this winter, the UK economy is in for a very hard few months. Hopefully things are better in the spring but this winter will be tough.

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