Britain is on course for its first downturn because the 2008 financial crash following the dominant services industry stagnated amid rising concerns over Brexit.
Growth in the services sector, which accounts for almost 80 per cent of Britain’s market, nearly stalled last month as business confidence plunged to its lowest level in over three decades.
Taken together with the all-sector PMIs for July and June, the readings indicate a 0.1 per cent contraction in GDP over the past few months.
Britain’s economy slowed down by 0.2 per cent in the second quarter of 2019. Thus a contraction in the third quarter will mean the country is in recession.
The PMIs are closely watched by the Bank of England as early signs of moves in the broader market, but some analysts say that the polls tend to overstate the level of upturns and downturns.