The threat of recession hangs over the UK as the economy is now in stagnation as Brexit hits consumer demand. When an economy is in staganation its either it pick up and bounces back to buoyancy or it goes into recession.
UK service sector barely expanded in January, as political uncertainty as regards Brexit continues to wounds the economy. Here below are things as they presently stand:
- UK’s dominant services sector is stagnating
- Private sector growth has fizzled out
- Growth is grinding to a halt
- ING: Risk that economy contract
According to reports monitor online on the Guardian, Britain’s services sector slowed to the brink of stagnation last month. Markit’s monthly service sector PMI dropped to just 50.1%, showing barely any growth at all.
Service companies reported that they’ve been forced to cut headcount, after suffering weakening new business. Many blamed Brexit uncertainty for spooking clients.
Economists fear that the UK could struggle to post any meaningful growth this quarter, given that construction firms and manufacturers also found January tough.
In another sign of economic anxiety, UK car sales have fallen by 1.6% in January – although electric vehicle sales rose.
Sources: The Guardian