LONDON — A closely watched survey shows that activity in the services sector in Britain contracted in March for the first time since the immediate aftermath of the country’s vote in June 2016 to leave the European Union.
Financial information company IHS Markit said Wednesday that the downturn reflected a lack of new work to replace completed projects, with many executives wanting Brexit clarity before making commitments.
The firm’s main purchasing managers index — a gauge of economic activity — fell to 48.9 points in March from 51.3 the previous month. Anything below 50 indicates a contraction in activity.
Chief business economist at IHS, Chris Williamson, said the British economy’s stalling will likely turn into a downturn “unless demand revives suddenly which, given the recent escalation of Brexit uncertainty, seems highly improbable.”
The Associated Press
