UK slips closer to recession as service sector slows

Concern over a no-deal Brexit hits growth and damages business confidence

Britain's dominant service sector failed to grow as quickly as expected in August, as the economy took a step closer to suffering its first recession since the financial crisis.

According to a survey from IHS Markit and the Chartered Institute of Procurement and Supply (Cips), which is monitored by the government and the Bank of England for early warning signs from the economy, meagre growth in the service sector failed to offset sharp declines in manufacturing output and construction activity last month.