Growth in the UK’s dominant services sector hits a 17-month low in the face of economic uncertainty
Growth in the UK’s dominant services sector has hit a 17-month low
Growth in the UK’s dominant services sector has hit a 17-month low. Output growth pulled in at a reading of 52.6 in July, according to the Purchasing Managers’ Index from S&P Global, above the 50 mark, indicating growth, for the 17th month in a row but down from 54.3 in June.
Many service providers said clients were being squeezed by economic uncertainty and inflation, though some were boosted by higher levels of tourism. The lacklustre activity in the sector, which covers everything from banking to hospitality, will send jitters through the Bank of England, which is set to push ahead with a 0.5 percentage-point rise today, taking rates to 1.75 per cent.