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According to the report, new business growth slowed last month and new exports also stalled. Economist Chris Williamson of IHS Markit, released the services sector PMI figures, a measure of manufacturing sector trends, stating that it was becoming more and more likely that Britain was "in sinking into the recession ". He said: "Activity in the services sector slowed down in August as Brexit concerns intensified, limiting business and consumer spending.
"So far this year, the service economy has posted its worst performance since 2008, with worrying weakness in sectors such as transportation, financial services, hotels and restaurants, and business-to-business services. "
However, at 11:00 am today, Investing.com reported that the numbers had returned to over 50% and said: "An index above 50 indicates that the service sector is expanding."
Since the 2016 referendum, economists have repeatedly predicted that Brexit was bad.
Just after the referendum, investment bank JP Morgan predicted that Scotland would leave the UK to buy a new currency. Scotland is still part of the UK and uses the pound.
Goldman Sachs (who donated £ 500,000 to the Remain campaign) predicted that the UK would be in recession by 2017. In fact, economic growth accelerated to 1.4 %.
And the Treasury itself has predicted 500,000 job losses. In fact, the UK is experiencing unprecedented levels of employment.
Mr. Williamson added, however: "This year, the service economy has had its worst performance since 2008, with worrying weaknesses in sectors such as transportation, financial services, consumer goods and services. hotels and restaurants, as well as business-to-business services.
"Following surveys indicating that the manufacturing and construction sectors were in deep recession in August, the lack of significant growth in the services sector makes it more likely that the UK economy will fall into recession.
"PMI surveys indicate so far a contraction in GDP of 0.1% in the third quarter.
"If the current slowdown is only moderate overall, the summer malaise could intensify in the future.
"Businesses are becoming increasingly gloomy about the outlook because of the political situation and uncertainties surrounding Brexit, which increases the risk of falling in the coming months.
He said morale was at its lowest since the economic crisis and "darker prospects" had also slowed job growth.
Economist Duncan Brock of the Chartered Institute of Procurement & Supply also worried about PMI figures, based on interviews with British procurement officials.
He said, "The service sector is hanging from end to end this month, staying just above the mark of no change, while domestic customers and customers export have abandoned their spending in favor of a wait and see approach and that the political environment has become increasingly blurred.
"The increasingly gloomy British economy has not let up, and the performance of the pound has not helped, as service providers have seen the largest increase in costs since January for wages. and the fuel they were no longer able to pass on. As competition for declining orders intensified, some companies resorted to price cuts instead of tempting customers through doors.
"All of these combined forces have dealt a blow to confidence, with service companies' trade expectations falling to July 2016 levels. UK companies can not absorb costs before UK consumers are aware of the impact. on their portfolio, and Brexit's indecision on Brexit is not enough for the sector before it contracts.
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