UK economic activity continues to slide

The April activity index slipped to 50.4 from 52.1 in March, indicating virtually no growth in activity during the month. With the service sector accounting for two-thirds of the UK economy, the data is evidence of economic slowdown and strengthens the case for further interest rate cuts in the coming months. Ian Kernohan, economist at RLAM, said: "In recent days, markets have become more optimistic that the worst of the credit crunch may already have passed. "To my mind, this is premature: while central banks may have stabilised the situation for now, the effects of the substantial t...