This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2017/oct/04/brexit-uncertainty-uk-service-sector-confidence
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Brexit uncertainty hits new business for UK service sector | Brexit uncertainty hits new business for UK service sector |
| (30 days later) | |
| Sector reports modest growth in September but confidence almost at its weakest since the end of 2011 | Sector reports modest growth in September but confidence almost at its weakest since the end of 2011 |
| Phillip Inman | Phillip Inman |
| Wed 4 Oct 2017 11.38 BST | Wed 4 Oct 2017 11.38 BST |
| Last modified on Wed 14 Feb 2018 15.31 GMT | |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| View more sharing options | View more sharing options |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Close | Close |
| Britain’s services sector expanded at a “modest” pace last month as mounting concerns about the impact of Brexit dampened orders and hit business confidence. | Britain’s services sector expanded at a “modest” pace last month as mounting concerns about the impact of Brexit dampened orders and hit business confidence. |
| Service sector companies reported strong consumer spending had underpinned expansion while orders from other businesses had fallen back to leave overall new sales growth at the slowest pace since August 2016. | Service sector companies reported strong consumer spending had underpinned expansion while orders from other businesses had fallen back to leave overall new sales growth at the slowest pace since August 2016. |
| Coming after surveys of the manufacturing and construction industries showed a mixed picture, the Markit/CIPS purchasing managers’ index (PMI) of the services sector showed September maintained solid if unspectacular growth. | Coming after surveys of the manufacturing and construction industries showed a mixed picture, the Markit/CIPS purchasing managers’ index (PMI) of the services sector showed September maintained solid if unspectacular growth. |
| Markit said the survey put the UK on track for a third quarter of weak growth this year, with the period covering the three months to the end of September likely to show GDP growth remaining at 0.3%, the lowest in the G7 group of developed countries. | Markit said the survey put the UK on track for a third quarter of weak growth this year, with the period covering the three months to the end of September likely to show GDP growth remaining at 0.3%, the lowest in the G7 group of developed countries. |
| “Service providers commented on subdued business-to-business sales and delayed decision making on large projects in response to Brexit-related uncertainty,” Markit said. | “Service providers commented on subdued business-to-business sales and delayed decision making on large projects in response to Brexit-related uncertainty,” Markit said. |
| “The net balance of survey respondents anticipating a rise in business activity over the next 12 months was the lowest since June, meaning that business confidence remained close to its weakest since the end of 2011.” | “The net balance of survey respondents anticipating a rise in business activity over the next 12 months was the lowest since June, meaning that business confidence remained close to its weakest since the end of 2011.” |
| Higher costs were another factor limiting sales after the largest monthly rise in average prices charged for goods and services since April. | Higher costs were another factor limiting sales after the largest monthly rise in average prices charged for goods and services since April. |
| The headline seasonally adjusted PMI was 53.6 in September, up from an 11-month low of 53.2 in August, but still lower than the index average of 54.3 in the second quarter. | The headline seasonally adjusted PMI was 53.6 in September, up from an 11-month low of 53.2 in August, but still lower than the index average of 54.3 in the second quarter. |
| Analysts are divided over the impact of low but sustained economic growth on the deliberations of the Bank of England’s monetary policy committee (MPC) and whether it will deter policymakers from raising interest rates. | Analysts are divided over the impact of low but sustained economic growth on the deliberations of the Bank of England’s monetary policy committee (MPC) and whether it will deter policymakers from raising interest rates. |
| Several MPC members, including the Bank’s governor, Mark Carney, have hinted that the committee intends to reverse last year’s cut in the base rate to 0.25% at its next meeting in November. | Several MPC members, including the Bank’s governor, Mark Carney, have hinted that the committee intends to reverse last year’s cut in the base rate to 0.25% at its next meeting in November. |
| The prospect of low growth and weak tax receipts is expected to limit the chancellor’s room for manoeuvre when he presents his autumn budget on 22 November. | The prospect of low growth and weak tax receipts is expected to limit the chancellor’s room for manoeuvre when he presents his autumn budget on 22 November. |
| Chris Williamson, the chief business economist at IHS Markit, which compiles the survey, said: “The services sector saw another month of modest growth, running in the middle ground between the robust expansion seen in manufacturing and the contraction recorded in construction. | Chris Williamson, the chief business economist at IHS Markit, which compiles the survey, said: “The services sector saw another month of modest growth, running in the middle ground between the robust expansion seen in manufacturing and the contraction recorded in construction. |
| “The three PMI surveys put the economy on course for another subdued 0.3% expansion in the third quarter, but the fourth quarter could see even slower growth. | “The three PMI surveys put the economy on course for another subdued 0.3% expansion in the third quarter, but the fourth quarter could see even slower growth. |
| “Across all three sectors, inflows of new business in September were the lowest for 13 months, and business optimism about the year ahead slipped lower. | “Across all three sectors, inflows of new business in September were the lowest for 13 months, and business optimism about the year ahead slipped lower. |
| “The surveys, therefore, portray an economy struggling with the unwelcome combination of sluggish growth and rising prices, presenting a dilemma for policymakers.” | “The surveys, therefore, portray an economy struggling with the unwelcome combination of sluggish growth and rising prices, presenting a dilemma for policymakers.” |
| In contrast to the UK’s flagging performance, the 19 countries in the eurozone continued to expand at a strong pace. | In contrast to the UK’s flagging performance, the 19 countries in the eurozone continued to expand at a strong pace. |
| Markit said the currency bloc ended the third quarter with a flourish as output growth accelerated to a four month high in September, underpinned by the steepest gain in new work for almost six and-a-half years. | Markit said the currency bloc ended the third quarter with a flourish as output growth accelerated to a four month high in September, underpinned by the steepest gain in new work for almost six and-a-half years. |
| The PMI index average for the eurozone hit 56.7 in September, up from 55.7 in August, leading Markit to say that the “outlook remained bright, with business optimism rising to a four-month high”. | The PMI index average for the eurozone hit 56.7 in September, up from 55.7 in August, leading Markit to say that the “outlook remained bright, with business optimism rising to a four-month high”. |
| Germany and France’s economies expanded at the fastest pace for more than six years, with both registering composite PMI’s above 57. Italy’s economy slowed slightly, but maintained a “solid” level of expansion that has lasted for 16 months. | Germany and France’s economies expanded at the fastest pace for more than six years, with both registering composite PMI’s above 57. Italy’s economy slowed slightly, but maintained a “solid” level of expansion that has lasted for 16 months. |
| Services sector | Services sector |
| Economic growth (GDP) | Economic growth (GDP) |
| Economics | Economics |
| Brexit | Brexit |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |