UK on recession alert amid slump in private sector activity

Poor performance in services industry and manufacturing is mirrored in eurozone

Britain's policymakers have been put on recession alert after a closely watched measure of economic health showed the UK gripped by a Europe-wide slump in private sector activity.

In a sign that higher interest rates are leading to a rapid slowdown in growth and choking inflation, the latest monthly business health checks showed weakness in the UK services and manufacturing sectors and the poorest performance since the Covid lockdown in early 2021.