uk services growth slows on brexitfuelled costs surge
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

By a Brexit-fuelled surge in costs, a survey showed

UK services growth slows on Brexit-fuelled costs surge

Arab Today, arab today

Arab Today, arab today UK services growth slows on Brexit-fuelled costs surge

The services sector accounts for some 80% of British economic growth
London - Arab Today

Britain's vital services sector slowed in January for the first time in four months, with activity hampered by a Brexit-fuelled surge in costs, a survey showed Friday.

The Purchasing Managers' Index (PMI) for the nation's services industry fell to 54.5 in January, down from 56.2 in August, data compiler IHS Markit revealed in a statement.

That undershot market expectations of 55.8 and was the slowest rise since October for the sector, which accounts for some 80 percent of British economic growth.

Cost pressures have loomed large as the pound has been dogged by Britain's looming EU exit. Input price inflation accelerated to its highest level since March 2011.

"The main area of concern is the extent to which companies' costs are rising across the economy," said IHS Markit economist Chris Williamson.

The services PMI did however hold above the critical 50 level -- which indicates expansion. A reading underneath 50 indicates contraction.

"Service sector growth eased after a strong end to 2016, but the January surveys still point to a buoyant start to 2017 for the UK economy," said Williamson.

He added that recent survey data suggested that the British economy would expand by a robust 0.5 percent in the first quarter, or three months to the end of March.

The economy had chalked up 0.6-percent growth in the final quarter of 2016, despite mounting concern over the impact of Britain's June 23 Brexit referendum.

"The stronger-than-expected growth since the Brexit vote has been entirely due to much stronger than expected household consumption growth. It won't last," predicted UniCredit economist Daniel Vernazza.

"Inevitably, consumption growth will slow as a result of higher imported inflation and the impending squeeze on real household income growth."

Friday's survey data was published one day after the Bank of England ramped up its UK economic growth forecasts for the next three years, despite the threat of Brexit stormclouds.

Alongside news that the BoE had kept its key interest rate at a record low, the British central bank lifted its 2017 economic growth prediction to 2.0 percent. 

That matched the official 2016 growth rate and marked an upgrade from the BoE's prior forecast of 1.4 percent.

Gross domestic product was set also to expand by 1.6 percent in 2018 and 1.7 percent in 2019. That was up from growth estimates of 1.5 percent and 1.6 percent respectively.

Britain's government will formally trigger the two-year EU divorce process by the end of March 2017.

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uk services growth slows on brexitfuelled costs surge uk services growth slows on brexitfuelled costs surge

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uk services growth slows on brexitfuelled costs surge uk services growth slows on brexitfuelled costs surge

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms

GMT 19:56 2017 Thursday ,09 March

Qatar Pavilion Opens at ITB Berlin

GMT 23:34 2013 Thursday ,07 February

New BMW 3 Series Gran Turismo

GMT 12:57 2017 Friday ,13 October

JPMorgan open to digital money if regulated

GMT 04:38 2017 Friday ,10 March

ADNOC opens fifth ADNOC Xpress

GMT 10:30 2017 Friday ,10 November

BDF military contingent honoured

GMT 17:37 2017 Tuesday ,24 January

China jails former Sinopec president for graft

GMT 19:34 2017 Sunday ,14 May

Austria centre-right calls for snap elections

GMT 14:54 2014 Saturday ,29 November

Wall cladding, wallpaper, fabric and wood!
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday