The UK services Purchasing Managers Index declined amid growing uncertainty in the economy and the lowest expansion rates of new jobs, the report published earlier this week showed.
According to IHS Markit, the UK services PMI fell to 52.2. The reading was below economists’ forecasts of a score of 53.3.
Markit Chief Economist Chris Williamson noted that concerns about Brexit have an increasing impact on the economy. In addition, the UK economy has faced other problems, including a slowdown in the global economy growth, trade wars, growing political instability and a worsening situation in the financial market. This uncertainty does not allow to implement changes in the monetary policy of the country.
According to analysts, the UK economy will grow by only 0.2% in the fourth quarter, which means a significant slowdown in GDP growth.
The rate of new business growth declined for the third time in the past four months. The IHS Markit research team also pointed out that the sentiment for the next year was the weakest since July 2016 due to the Brexit uncertainty and concerns about the general state of the British economy.
