The UK’s economy is losing steam while Brexit concerns are piling up, as a survey showed that growth in one of the British leading sectors, namely service sector, was at the worst level in a year last month.
The IHS Markit/CIPS services PMI went down to 53.2 for the last month, while the July figure had been 53.8, the August data was also lower than the anticipated 53.5 in a survey by Reuters. It’s the worst instance since September 2016, some time past the referendum vote.
IHS Markit’s Chris Williamson stated that the service sector deceleration could well have an influence on the Bank of England’s decision for further rock-bottom interest rates, the bankers are due to meet next week. Upbeat mood gained on managers a bit though still kept rather low which has been a characteristic of a stalling or shrinking economy in the past, and Brexit remained the primary reason for worries, he added.
British Prime Minister’s cabinet has to initiate thorough negotiations with the EU on a range of issues including trade, nearly two years before one of the world’s top five economies leaves the European Union. At first Britain managed to resist the blow of the Brexit vote last summer, but at the beginning of this year it significantly slackened as mounting inflation and slow wage growth harmed household budgets.