UK Service Sector Falls in December

Activity in the UK’s services sector fell for the first time in two years in December, a survey has suggested, raising fears of yet another recession.

The PMI services index from Markit/CIPS fell to 48.9 in December, down from 50.2 in November. Any score below 50 indicates the sector is shrinking.

Markit blamed the contraction on a fall in new business.

It said the numbers suggested the UK economy shrank by 0.2% in the final three months of 2012.

The UK emerged from a double dip recession last summer with growth of 1% in the three months to September.

“The first fall in service sector activity for two years raises the likelihood that the UK economy is sliding back into recession,” said Chris Williamson, chief economist at Markit.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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