|Market Research A to Z | Company Profiles A to Z | Register | Contact Us | Shopping Basket|
|+44 (0) 203 086 8600 Call us on|
Activity within the UK service industry took a hit in December, as it fell for the first time in two years, raising fears of yet another recession.
The Markit/CIPS services Purchasing Managers' Index (PMI) for services, which makes up three-quarters of the UK economy, dropped to 48.9 in December - its lowest reading since April 2009 - from 50.2 in November.
Markit said the figures, combined with mixed manufacturing and construction figures earlier this week, mean the Britain posted its worst quarterly performance for three-and-a-half years, and suggest the economy contracted by 0.2pc in the last quarter of 2012.
Service sector firms reported a slide in new work in December amid budget constraints and a lack of confidence, which was the second back-to-back decrease in new work since mid 2009.
Bad weather was also thought to have been a factor behind the overall contraction in the services sector as Britain was hit by persistent rain.
Construction firms were likewise badly impacted by last month's heavy rainfall, with the PMI survey showing activity in the sector falling at its fastest rate for six months, dragged lower by a poor performance in the housebuilding sector.
Manufacturing was the only bright spot last month with activity surging to a 15-month high in December, according to surveys, but the sector only accounts for 10 per cent of the economy.
The survey does not cover the retail sector, but there is little confidence that consumer spending over Christmas was enough to offset woes in the services and construction sectors, given cost pressures on UK households.
For more information on UK service industry, see the latest research: UK Service Industry
Follow us on Twitter @CandMResearch
Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support
Use our skills and global network of researchers and consultants to help find and source the business information you need.
Contact us now on 00 44 (0) 203 0868600 or "enquiries @ companiesandmarkets.com" to discuss you requirements and we can provide you with a research solution at suprisingly efficient rates and timelines.
Sometimes we can even find the information you require for free.
We are offering our clients substantial savings on the best research available during September. Please contact us either via email or by calling our team to discuss your specific research needs on Tel: 00 44 (0) 203 0868600.