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Britain’s service sector suffers because of Brexit unclarity

UK services sector grew slowly in September, pulled down by worries over Brexit, which negatively affect the number of orders and damage business confidence.

Companies involved in service industry reported that robust spending drove growth up, whereas demand from other industries diminished leading to the lowest rate of growth since August of last year.

Manufacturing and building sectors surveys demonstrated differing results, with production orders in positive trend and the building sector showing slump, afterwards the Markit/CIPS PMI of the services sector registered steady though undistinguished rise in September.

Markit noted that the survey disclosed the UK had performed slowly in the July-September period this year, and the three months till October probably would show GDP keeping 0.3% rise, that is the worst among the G7 countries.

Service companies said b2b deals are stagnating and big project decisions are being postponed in view of Brexit unclarity, Markit reported.

The net balance of those surveyed expecting enlivening in business activity in the coming 12 months was the lowest since June, which signifies that business confidence stays near the minimum since the end of 2011, it also said.

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