Signs of UK economy slowing down

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Signs of UK economy slowing down

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There is mounting evidence that economic growth in Britain is set for a sharp slowdown due to the credit crunch and higher borrowing costs.

The latest information shows both service sector expansion and the manufacturing recovery faltering in Europe’s second largest economy.

The Chartered Institute of Purchasing and Supply’s index for October fell to its lowest in over four years. That index is compiled based on responses by around 700 service companies in Britain.

Official data also showed the fragile recovery in manufacturing slipped into reverse, with growth falling at its fastest rate in a year and a half.

That follows on from the Confederation of British Industry5;s survey released last week which found retail sales growth eased more than expected in October to its slowest pace in almost a year.