UK’s service sector stagnated in January according to the IHS Markit/CIPS purchasing managers’ index.
The figures showed a reading of 50.1 in January, lower than December’s 51.2.
The pound fell 0.17 per cent to $1.3017 following the disappointing data.
Britain’s didn’t fall into a recession after the 2016 referendum vote However, growth slowed sharply in late 2018 as the Brexit deadline approached with no agreement, on how to leave the European project, set in place.
IHS Markit’s Chris Williamson said: “Growth ground almost to a halt in January, matching similar disappointing news in the manufacturing and construction sectors.
“The last three months have seen the economy slip into its weakest growth spell for six years and indicate that GDP likely stagnated at the start of 2019 after eking out modest growth of just 0.1% in the fourth quarter.
“The survey results indicate that companies are becoming increasingly risk averse and eager to reduce overheads in the face of weakened customer demand and rising political uncertainty.
“Such worries were in turn most commonly linked to heightened Brexit anxiety, though wider global political and economic factors were also seen to have been taking their toll on demand.”
Rationalist destroys Leavers with list of all EU laws that have been forced on us against our will
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
