UK’s Key Services Sector Barely Growing Amid Brexit Concern

LONDON (AP) — New data shows that Britain’s huge services sector is struggling in the face of Brexit.

A closely watched survey from financial data firm IHS Markit and the Chartered Institute of Procurement and Supply shows that activity in the services sector was at its lowest since July 2016, just after the country voted to leave the European Union.

The sector barely grew during November according to the survey. The so-called purchasing managers index, a gauge of business activity, fell to 50.4 points in November from 52.2 the previous month. The 50-point level separates expansion from contraction on a 100-point scale.

Optimism in the sector was also at its lowest level since the Brexit vote.

Pantheon Macroeconomics’ chief U.K. economist Samuel Tombs says “Brexit uncertainty is draining momentum from the economy.”

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