UK service sector growth slows


Ex nsion in the key UK service sector slowed last month, according to a closely-watched study.

The purchasing managers’ index (PMI) for the sector from Markit/CIPS level from 53.5 in May to 52.3 in June. This matched April’s see, which was the lowest since February 2013.

A figure above 50 displays the sector is ex nding.

The results reflect the “intensified” anxiety over Brexit in the run-up to the referendum, Markit put about.

Almost 90% of the data was collected before the referendum result was certain.

“The PMI surveys indicate that the ce of UK economic growth slowed to very recently 0.2% in the second quarter, with a further loss of momentum in June as Brexit desire intensified,” said Chris Williamson, Chief Economist at Markit.

“A to boot slowing, and possible contraction, looks highly likely in coming months as a occur of the uncertainty created by the EU referendum.”

The data on the service sector follows Monday’s lame report on the UK’s construction industry.

The Markit/CIPS construction purchasing administrators’ index fell to 46.0 in June, its lowest level since June 2009. It had been 51.2 in May.

Censure cut ahead?

“[The] services survey was thankfully not as bad as the construction survey released yesterday. But it was not that advantageous either and suggests that the economy struggled to grow much at all in Q2,” thought Ruth Miller, UK economist, at Capital Economics.

“However, there is reach for policymakers to respond to any weakness in the economy ahead. We think that a cut in catch rates in the near term looks likely and possibly a re-starting of the Bank of England’s quantitative relaxing purchases,” she said.

Markit’s purchasing managers’ index for UK manufacturing, distributed last week, showed a slight pick-up in June from May.

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