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UK at heightened risk of recession after key indicator shows market contracting

  • 📰 The Yorkshire Post
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The UK is at a heightened risk of recession, economists have warned, after the latest purchasing managers index (PMI) showed a the private sector contracted faster than expected this month, with the worst economic performance since the covid lockdowns of early 2021.

Companies are also downsizing their workforces at the fastest rate since 2009, apart from the extraordinary months of pandemic lockdowns.

The PMI - seen by economists as one of the key predictors of economic activity - works by assigning a score to a sector, with any score below 50 being thought to show contraction. The further away from 50, the faster the contraction.

 

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