U.K. Cuts Taxes as Flagging Economy Falls Into Recession

By Geoffrey Smith 

Investing.com — The new U.K. Government unveiled a suite of measures to cut taxes and stimulate growth as fresh data showed the economy sliding into recession at the end of the third quarter.

Chancellor of the Exchequer Kwasi Kwarteng stood up to announce a widely trailed “mini-budget,” minutes after a closely watched survey showed both services and manufacturing activity contracting in September.

The composite U.K. purchasing managers index compiled by S&P Global fell to 48.2, its lowest since February 2021, from 48.9 in August. The manufacturing PMI ticked up surprisingly to 48.5, but the services PMI, which covers a much larger section of the British economy, slumped to 49.2 from 50.9.