UK economy facing heightened risk of recession
The 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% in the three months to September, after a 0.2% fall in the previous quarter. “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. However, some experts urged caution, as official data last month eased recession fears.