By Maximilian Clarke
Growth for the UK’s vital services sector slowed in October as further doubts over the economic recovery have seen a loss of confidence for services providers.
The latest Markit/ Chartered Institute of Purchasing and Supply index recorded an index figure of 52.0, down from 52.9. However, a figure of over 50 indicates growth and the sector- which contributes some 2.3 of the UK’s economy- continues grow.
Yesterday (Wednesday) saw a surprise growth in the construction sector, confirmed by the same institutions’ study, whilst the Office for National Statistics this week posted a UK GDP growth figure of 0.5% for the quarter- exceeding forecasts.
Continued economic uncertainty among the UK’s chief trading partners, coupled with stunted domestic confidence resulting fro the Chancellor’s austerity packages, have led many analysts to predict a reversal of recent growth in the coming months.
"With manufacturing contracting, the October PMI surveys are signalling a heightened and substantial risk that the UK could slip back into recession. Any worsening of the PMIs in November or December would mean a contraction and this is likely," commented Markit’s Chris Williamson.
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