UK PMI falls at fastest rate in 2 years
Senior jumps after upbeat forecast
FTSE 100 down 0.4, FTSE 250 adds 0.3

Jan 24 Reuters UK39;s bluechip index fell on Tuesday, with healthcare and commodity stocks leading losses after data showed British privatesector economic activity fell at its fastest rate in two years in January.

The FTSE 100 fell 0.4, with drugmaker AstraZeneca and miner Glencore proving the biggest drags on the index.

The SP GlobalCIPS flash composite Purchasing Managers39; Index PMI dropped to 47.8 in January from 49.0 in December, at the bottom end of economists39; forecasts, as businesses blamed higher Bank of England interest rates, strikes and weak consumer demand for the slowdown.

Separately, data showed Britain39;s government borrowed more last month than in any December since monthly records began 30 years ago, reflecting the huge cost of energy support and soaring debt interest linked to rising inflation.

A difficult morning for the UK datawise, as the higherthanexpected borrowing figures highlight the tight fiscal constraints the government is working under, said Stuart Cole, head macro economist at Equiti Capital.

Similarly disappointing PMI numbers, showing output falling at its fastest pace for some two years, will reinforce fears that the UK economy is heading into recession, if not in one already.

Market participants are pricing in a 70 chance of a 50basispoint hike by the Bank of England next week.

Interest rate hikes are expected…