UK services sector growth picked up slightly in December, a survey shows, but companies warned Brexit uncertainty was affecting client spending.
The Chartered Institute of Procurement & Supply’s business activity index for services rose from 53.8 in November to 54.2 last month on a seasonally-adjusted basis, signalling modestly faster growth.
But the survey, conducted by IHS Markit, pointed to slower services employment growth. It also signalled slower new business growth in the sector.
Howard Archer, chief economic adviser to the EY ITEM Club think-tank, said: “The December purchasing managers’ survey indicated the services sector saw modestly improved activity in December. However, activity was still steady rather than robust and weaker new business growth and employment in the sector is a concern for future activity.”
CIPS said: “Service providers noted that Brexit-related uncertainty continued to hold back clients’ willingness to spend at the end of 2017.”
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