UK midcaps hits new one-month low as business activity stalls

FILE PHOTO: Pedestrians leave and enter
the London Stock Exchange in London

(Reuters) -The British midcap index hit a fresh one-month low on Tuesday as a looming gas crisis in Europe and news of slower-than-expected business activity growth exacerbated fears of recession, while a stronger pound weighed on the exporter-heavy FTSE 100.

The domestically oriented FTSE 250 closed down 1%, marking a third consecutive day of decline, as soaring UK gas prices fueled fears of surging inflation that has restrained the economy. [EU/NG]

A closely watched survey showed growth in Britain'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 that recession may be looming.

Full story at Yahoo News.

By Johann M Cherian, Sruthi Shankar and Aniruddha Ghosh.