UK Economy ‘Near Stalling’ as Growth Engine Stutters

The UK’s services PMI fell to a three-year low

by Szu Ping Chan

The UK economy is “near stalling”, according to a closely-watched survey that showed activity in Britain’s dominant services sector dropped to a three-year low in April.

Markit said the slowdown in services reflected uncertainty over next month’s EU referendum and higher costs due the introduction of the National Living Wage.

Business optimism was the joint weakest in more than three years, while the pace of job creation was the weakest in two-and-a-half years.

Chris Williamson, chief economist at Markit, said the slowdown suggested the UK economy started the second quarter growing at a pace of just 0.1pc.

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