UK’s services sector losing its post Brexit resilience

By on September 5, 2017

FILE: United Kingdom (Photo: Shutterstock)
FILE: United Kingdom (Photo: Shutterstock)

LONDON — A survey is suggesting that the resilience of Britain’s crucial services sector since last year’s Brexit vote may be coming to an end.

Financial information company IHS Markit says the pace of growth in the services sector, which accounts for around 80 per cent of the British economy, eased to its slowest level since September last year.

It said its purchasing managers’ index for the sector fell to 53.2 points in August from 53.8 the previous month amid signs that “Brexit-related uncertainty continued to undermine business confidence.” Anything above 50 indicates expansion.

In the wake of the June 2016 vote to leave the European Union, the services sector held up, helping to cushion the shock of the decision. There’s been a raft of evidence recently showing a Brexit hit.