Bells

The British economy may be in recession tipped to a downturn in the dominant service sector, according to closely watched figures.

Fell to a six-month low of 49. 5 in September. The 50 level divides growth from expansion.

He is proposing, the economy shrank 0. 1% in the three months to September, following a 0. Decrease of 2% in the previous quarter.

Some experts urged caution since the official data of The Last month eased the fear of recession.

Combined with the weaker manufacturing purchasing managers' index (PMI) earlier This Week , September -, all-sector PMI Fell to 48. 8 of 49. 7. This was the lowest since the month after the referendum to decide the EU in June 2016, and prior to that in 2009.

"Coming on The Heels of a decline in the second quarter, [this] would mean the UK against an increased risk of recession," said Ihs Markit economist Chris Williamson . A recession is usually defined as an economy contracts for Two consecutive quarters.

"September, the decline is even more ominous, the the result of a creep to the weakening of demand in the course of The Past Year rather than a sudden shock," Mr Williamson. He lifted Brexit uncertainty, worries about the tensions between the US, China and Europe and weaker growth in the eurozone.

Separate PMI figures on Thursday in Germany, the service sector showed a strong momentum lost in September, stoking fears that the contraction of the country's manufacturing sector spilling over into the rest of Europe's largest economy. Germany's services PMI Fell to 51. 4 out of 54. 8 in August, the lowest in three years.

Although the PMI data is dense, he is followed by not as fool-proof. Immediately after the Brexit referendum, and the details of a sharper downturn than is actually the case.

in The Last month (ONS) pointed to the British economy grows faster than expected In July , so the fears that it could fall into a recession.

growth was flat over the three months to July, but this was an improvement over the 0. To see a 2% contraction in the April-to-June quarter. ONS growth figures for August is due for release on 10. October.

This survey listened to the recession, the Alarm Bells - showed on the second quarter of shrinking GDP. Not only does it mean one of the greatest dips in activity in the dominant service sector, since the financial crisis, but, with its partners, for manufacturing and construction, signals a decline in production in the economy as a whole.

Should we be concerned? These surveys are The First monthly insight into the state of large parts of our economy. But in these stormy times, you might check out more of a mood, rather than a full-body MOT.

The authors refer to Brexit-related fear: a feeling, but as an activity that can tarnish or darken the image. It wouldn't be the First Time . Earlier this Year (because we have these surveys do not fully reflect the flood in Brexit preparations are, of course, been here before). Nor do they include the private or The Public sector - Two areas that are the basis for the growth we have seen. The surveys can pay and differ from the official growth.

But it would be dangerous to ignore the warnings. Mood all kinds of business may dictate-plans - from investment to recruitment. The impact of these longer than one-quarter of the GDP. To downbeat

economists said on Thursday, the PMI figures were A Warning . Ruth Gregory , a senior UK economist at Capital Economics, said it relates to ignite the economy is in recession, as it "suggests that growth in the biggest part of the economy has run into the sand".

But, while Dean Turner , UK economist at UBS, Global Wealth Management, said the figures were "bleak", he added that the PMIs "have had a tendency to overreact relative reality. It is too early to conclude that the UK is heading for a recession on these numbers alone. "

And Samuel Tombs , chief UK economist at Pantheon macroeconomics, went even further. "The survey is the poor record of The Last means the recession signal should not be believed," he said. "The Markit services survey was much to be downbeat in The Last Year . "

Source of news: bbc.com