FEARS over the UK economy have been fuelled by a key survey which signals growth stalled in January amid Brexit fears.
UK services companies last month experienced their first fall in new orders since July 2016, in the immediate aftermath of the Brexit vote. They cited delays to projects caused by Brexit uncertainty.
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The survey, published by the Chartered Institute of Procurement & Supply, shows the UK’s key services sector achieved only marginal growth in January.
CIPS’s latest surveys on the UK manufacturing and construction sectors also highlight the impact of Brexit.
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UK manufacturers stockpiled inputs at a record pace in January.
Chris Williamson, chief business economist at survey compiler IHS Markit, said: “Comparisons of the PMI (purchasing managers’ indices) with official data indicate that GDP likely stagnated at the start of 2019 after eking out modest growth of just 0.1% in the fourth quarter.”
He added: “Such a subdued start to the year, combined with worrying signs of global economic weakness, suggest economic forecasts for growth in 2019 are likely to be revised lower.”
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