The UK service sector continues to shrink

The UK’s purchasing managers’ index (PMI) for services fell to 48.8 last month, according to S&P Global/CIPS data.

In the PMI data, which is considered the main data, above 50 is interpreted as “growth” and below this level as “contraction”.

While the service sector, which accounts for around 80 per cent of the UK economy, has been contracting for the past 2 months, it was the lowest level since January 2021.

‘THE MOST DIFFICULT PERIOD FOR THE BRITISH ECONOMY’

S&P Global chief economist Chris Williamson said: “The government’s change in economic policies has reduced volatility in financial markets. However, the economic landscape created by the mini-budget regulations in September has not changed.

Stating that the British economy contracted by about 0.4 percent on a quarterly basis, Williamson said: “This is the most difficult period the British economy has faced, except for the peak of the epidemic.” he performed the assessment of it.

Meanwhile, the UK manufacturing PMI had risen to 46.4 in November.

As the British economy contracted by 0.2 percent in the third quarter of this year, the Bank of England announced that the country had entered a recession.

Inflation in the UK continued to rise, especially driven by energy and food prices, hitting a 41-year high of 11.1 percent annually in October. (AA)