U.K. Services Shrink as Risk of Recession Increases: Economy

U.K. services unexpectedly shrank for the first time in two years in December, clouding the economic outlook as Britain struggles to avoid a triple-dip recession.

A gauge of activity declined to 48.9 from 50.2 in November, Markit Economics and the Chartered Institute of Purchasing and Supply said in London today. Economists had forecast no change, according to the median of 30 estimates in a Bloomberg News survey. A reading below 50 indicates contraction. Another report showed euro-area services shrank for an 11th month in December.