Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

UK services sector hobbled by politics: PMI

Published 12/04/2019, 04:38 AM
Updated 12/04/2019, 04:41 AM
UK services sector hobbled by politics: PMI

LONDON (Reuters) - Britain's services sector shrank in November to mark three months without growth for the main driver of the economy, a survey showed on Wednesday as uncertainty over Brexit and an imminent national election weighed.

The IHS Markit/CIPS UK Services Purchasing Managers' Index (PMI) fell in November to 49.3 from October's 50.0.

The reading was revised higher from a preliminary 48.6, but the index has still not exceeded the 50 threshold for growth since August - the longest such run since 2009.

"Service providers have attributed the recent soft patch to delayed decision-making on new projects until greater clarity emerges in relation to the domestic political landscape," IHS Markit economist Tim Moore said.

The survey added to a string of underwhelming business activity data in the run-up to the Dec. 12 vote. However, the state of the economy has only played a minor role in an election campaign dominated by Britain future relationship with the European Union and promises of increased spending on public services.

The figures suggested the world's fifth-biggest economy is contracting at a quarterly rate of 0.1%, financial data company IHS Markit said, a smaller decline than the 0.2% suggested by November's flash estimate.

The PMIs have overstated economic weakness recently, in part because of higher government spending ahead of Brexit that has not been captured in private-sector measures of demand.

"November's PMI surveys collectively suggest that the UK economy is staggering through the final quarter of 2019, with service sector output falling back into decline after a brief period of stabilization," Moore said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

New orders contracted at the fastest pace since July 2016, the month after Britons narrowly voted in favor of Brexit in a referendum, the PMI showed.

The composite PMI, which combines the services and manufacturing output indexes, fell to 49.3 from 50.0, matching September's 38-month low, but down less than its flash estimate of 48.5.

- Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.

To subscribe to the full data, click on the link below: https://www.ihsmarkit.com/about/contact-us.html

For further information, please phone IHS Markit on +800 6275 4800 or email economics@ihsmarkit.com

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.