The services sector, which accounts for about three-quarters of private sector output, faced the biggest squeeze since the second Covid-19 lockdown, according to a closely watched survey. A slump in manufacturing output dating back to last August continued in December.
The S&P Global/Cips flash purchasing managers’ index, which includes 80% of the survey’s responses from the services and manufacturing sectors, dropped below the level expected by City economists to 47.8 from 49 in December. A reading below 50 indicates activity contracted.
Chris Williamson, the chief business economist at S&P Global Market Intelligence, said industrial disputes, staff shortages, export losses, the rising cost of living and higher interest rates “all meant the rate of economic decline gathered pace again at the start of the year”.
He said: “Weaker than expected PMI numbers in January underscored the risk of the UK slipping into recession.”
Read more at The Guardian