LONDON (Reuters) – British business providers companies are their most downbeat since November 2016 because of slowing gross sales development and fast-rising prices, in addition to uncertainty concerning the phrases on which Britain will depart the European Union subsequent yr.
FILE PHOTO: The Canary Wharf monetary district is seen at nightfall in London, Britain, November 17, 2017. REUTERS/Toby Melville/File Photo
The Confederation of British Industry stated its quarterly survey of service-sector sentiment sank to -Four from +14 for companies offering providers in areas resembling computing, consultancy and telecoms, and prices rose on the quickest tempo since August 2008.
Consumer-facing companies did higher, after optimism recovered to an above-average +7 within the three months to August from a dip to -11 in May, although their earnings have been squeezed by rising prices too.
“Demand growth is expected to remain subdued next quarter and firms seem hesitant over the prospects for expanding their businesses in the year ahead,” CBI chief economist Rain Newton-Smith stated.
“The government and Brussels need to get on with … agreeing a new relationship between the UK and the EU that puts people’s livelihoods above politics,” she added.
Official information confirmed Britain’s providers sector stagnated in June, and recorded solely modest annual development of 1.5 p.c.
Last week Britain’s Brexit minister, Dominic Raab, stated he was assured of securing an interim take care of the European Union earlier than Britain leaves in March 2019, however warned of pink tape, border delays and costlier bank card charges with out one.
Reporting by David Milliken; Editing by William Schomberg