Mahmut Can Emir / Istanbul, Dec. 5 (DHA) - UK service sector growth has fallen to near halt, with business confidence weakest since 2016.
According to IHS Markit’s monthly UK services PMI has dropped to just 50.4 in November/ That’s the weakest reading since just after the 2016 EU referendum.
Service sector companies have reported that business activity and incoming new work both expanded at the weakest rates for almost two-and-a-half years.
Several firms told Markit that heightened Brexit uncertainty had led to delays with clients’ business investment decisions.
Chris Williamson, Chief Business Economist at IHS Markit, is very concerned. He believes overall UK growth may have slowed to just 0.1% percent this quarter.
Williamson said, “A sharp deterioration in service sector growth leaves the economy flatlining in November as Brexit concerns intensified. Measured across services, manufacturing and construction, the survey results suggest that the pace of economic growth has stalled.
“With the exception of July 2016, when business slumped in the immediate aftermath of the EU referendum, November saw the worst performance since February 2013.
“The surveys are so far consistent with 0.1 percent GDP growth in the fourth quarter, thanks to the expansion seen back in October, but growth momentum has since been lost and risks are clearly tilted to the downside.