PMI shows Brexit hurts British economy

CNC
Added On January 7, 2019

 Services purchasing managers' index or PMI data showed that the British economy is now in a low-growth mode as the uncertainties of Brexit hang over it.

 
The IHS Markit/CIPS PMI for the dominant services sector recorded 51.2 for December.
 
The important indicator of business sentiment figure means growth when it's above 50.
 
This is a slight improvement from the November figure of 50.4, a 28-month low. However, the improved growth was still weaker than any of the monthly figures in the third quarter.
 
Reports from survey respondents suggested that Brexit-related concerns were a key factor weighing on business-to-business spending at the end of 2018. A number of firms also noted that subdued consumer demand had acted as a brake on sales in December.
 
Business activity rose at one of the lowest rates over the past two and a half years. 
 
Experts believe the economy could take a bad turn in Q1 this year due to political uncertainty as further no-deal preparations are ramped up and businesses and households may defer expenditure to an even greater extent.