UK service sector growth slows

Growth in the key UK service sector slowed last month, according to a closely-watched survey.

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

A figure above 50 indicates the sector is expanding.

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

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

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

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

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

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

Read more here…

Economy