“The Latest Purchasing Managers’ Index data for the service sector highlights the rising risk of a recession in the UK. The drop from 50.6 points to 49.5 points in September, means the service sector is the latest to fall below the neutral 50-points line that divides expansion from contraction. This is only the fifth time in the last ten years that the service sector PMI has been below the 50-points mark.
“Similar to the construction and the manufacturing sector, service companies are facing increasing Brexit-related headwinds which led to a weakening of the labour market as well as softer inflow of new orders. With no resolution on the Brexit deadlock in sight, Dun & Bradstreet is maintaining its ‘deteriorating’ risk outlook for the UK economy and lowering real GDP growth forecasts for 2019 and 2020.”
Markus Kuger, Chief Economist at Dun & Bradstreet