Independent UK: Service sector slowdown fuels stagnation fears

[marmar]

Activity in in Britain's dominant services sector plunged at its fastest rate for more than a decade last month raising fears that the economy is grinding to a halt.

The Markit/Cips services purchasing managers' index (PMI) registered its biggest ever fall apart from April 2001 when the foot-and-mouth crisis hammered agriculture and knocked tourism.

Markit said the services slowdown sent its all-sector index into territory indicating a near-stagnation in the economy. Growth in the third quarter could be worse than the anaemic performance for the second quarter and Britain could slip back into contraction by the end of the year, it added.

Services such as hotels, travel, law and accountancy are vital for economic growth because they account for about three-quarters of GDP. ............(more)

The complete piece is at: http://www.independent.co.uk/news/business/news/service-sector-slowdown-fuels-stagnation-fears-2349896.html