The UK services sector and employment fell sharply in September amid the rising uncertainty over the country's withdrawal from the European Union, the IHS Markit information provider said in a report on Thursday
MOSCOW (Pakistan Point News / Sputnik - 03rd October, 2019) The UK services sector and employment fell sharply in September amid the rising uncertainty over the country's withdrawal from the European Union, the IHS Markit information provider said in a report on Thursday.
"The latest IHS Markit/CIPS PMI [Purchasing Managers' Index] data for the UK service sector signalled a contraction in activity in September, and the biggest cut in employment in over nine years. With both new and outstanding business declining at the end of the third quarter, companies were the least optimistic of future growth of activity since July 2016 following the EU referendum," the report said.
According to IHS Markit, the Business Activity Index sank in September from 50.6 to 49.5, marking only the fifth decrease below the 50.0-level within a decade.
"The service sector labor market weakened notably in September. Jobs at service sector companies were cut for the first time in five months, and at the fastest rate since August 2010. Workforces fell at 19% of survey respondents, with most commenting on the non-replacement of leavers as opposed to compulsory redundancies," the report noted.
According to Chief Business Economist at IHS Markit Chris Williamson, the decline is observed not only in the services sector, but also in manufacturing and construction.
"Brexit-related concerns dominated the September survey responses, linked by companies to falling sales, cancelled and postponed projects, a lack of investment and job losses," he added.
The United Kingdom still faces a deadlock over its possible withdrawal from the European Union. A deal for the exit was reached by London and Brussels last year but was rejected by parliament, eventually leading to former Prime Minister Theresa May's resignation. The new prime minister, Boris Johnson, seeks to withdraw from the European Union on the current October 31 deadline but also faces sharp opposition from parliament.
