UK flash composite PMI at 50.9 vs est 51.1
Defensive sectors weigh on FTSE 100
Wood Plc drops after H1 results
FTSE 100 down 0.3, FTSE 250 off 0.1
Aug 23 Reuters UK39;s midcap index hit a fresh onemonth low on Tuesday as a looming gas crisis in Europe and data showing slowerthanexpected growth in business activity exacerbated fears of recession.
The domestically oriented FTSE 250 slipped 0.1, down for a third consecutive session, as soaring UK gas prices added fears of surging inflation that has restrained the economy. EUNG
The exporterheavy FTSE 100 slid 0.3, dragged by pharma and consumer companies. But oil majors Shell and BP inched higher, supported by rising crude prices.
A closely watched survey showed growth in Britain39;s private sector slowed to a crawl in August as factory output fell and the larger services sector eked out only a modest expansion, adding to signs recession may be looming.
Although they39;re still growing, there39;s a fear that they could slip into contraction territory, said David Madden, market analyst at Equiti Capital in London.
Combined with that, the Bank of England BoE have hiked interest rates loads of times but they39;re not getting inflation under control. So now they39;ll probably keep hiking rates and compounding the overall issue.
British consumer price inflation is set to peak at 18.6 in January, more than nine times the BoE39;s target, an economist at U.S. bank Citi said on Monday, raising his forecast once again in…