The most recent look at the service sector has raised some serious concerns about the health of the industry with the PMI reading for September falling below the 50 mark and into contractionary territory.
Coming shortly after weak readings from the manufacturing and construction sector this data makes it a triple whammy of bad news for the UK economy is as many days and points to a GDP fall of 0.1% in Q3. Should this occur then the UK would enter a technical recession under the widely held definition of two consecutive quarters of negative growth - and that’s before we’ve even got that close to the current October 31st deadline for leaving the EU.
There’s been some fairly small scale selling seen in the pound since the data dropped while UK bonds have ticked higher but the market reaction is fairly subdued on the whole given the implications of the release.