LONDON (Reuters) – Britain’s providers sector stored up its regular progress in September however uncertainty concerning the financial system remained excessive six months forward of Brexit, a business survey confirmed on Wednesday.
FILE PHOTO: Customers are seen eating at Mr Fish in north London May 22, 2012. REUTERS/Eddie Keogh
The IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) slipped to 53.9 from 54.three in August, broadly consistent with the median forecast of a Reuters ballot of economists that had pointed to a studying of 54.zero.
The survey urged Britain’s financial system grew at a quarterly charge of slightly below zero.four % throughout over the July-September interval, knowledge company IHS Markit mentioned — its common progress charge because the Brexit referendum of June 2016.
“Brexit worries continue to dominate the outlook, however, keeping business optimism firmly anchored at levels which would normally be indicative of an imminent slowdown,” Chris Williamson, chief economist at IHS Markit, mentioned.
London and Brussels have but to agree the phrases of their March 29 divorce, that means there may be nonetheless an opportunity of a “no-deal” Brexit that almost all economists assume would hurt British companies.
Other knowledge have additionally pointed to regular financial progress for now, though final week official statisticians mentioned British corporations lower their funding within the second quarter of 2018, a modern signal of nervousness about Brexit.
Wednesday’s PMI additionally pointed to rising value pressures confronted by British corporations linked to rising oil costs.
“The steady economic expansion and intensification of cost pressures will add to views that the next move in (Bank of England) interest rates will be another hike,” Williamson mentioned.
“However, with Brexit uncertainty intensifying in recent weeks, any rise seems unlikely prior to the scheduled March 29th exit from the EU.”
Reporting by Andy Bruce; Editing by Hugh Lawson