Service sector drop spark economy fears

Fears for the UK economy have grown after figures suggested the powerhouse services sector shrank last month for the first time in two years.

The Markit/CIPS purchasing managers' index (PMI) survey showed a reading of 48.9 in December, down from 50.2 in November and below the 50 mark which separates growth from contraction.

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UK service sector shrinks

There are fears over the economy after figures suggested the service sector shrank last month for the first time in two years. It comes after disappointing construction figures yesterday.