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Bloomberg
Growth in the UK’s dominant services industry unexpectedly slowed to the weakest since the aftermath of the Brexit vote and came perilously close to contraction. IHS Markit’s Purchasing Managers Index for the industry fell to 50.4 last month, well below economists’ forecasts for a reading of 52.5 and just above the key 50 level that indicates expansion.
The surveys for the past two months indicate overall economic growth of 0.1 percent in the fourth quarter, Markit said. The pound was little changed after the data, at $1.2733 as of 9:39 am London time.
“A contraction of service sector business activity in November was only avoided by firms working through backorders to an extent not exceeded since 2009,†said Chris Williamson, chief business economist at Markit.
Gauges for new business and optimism were also the lowest since July 2016, with firms complaining that consumer spending was subdued and Brexit uncertainty was holding back investment decisions.