UK service sector, which accounts for about 80% of GDP, was disappointing at the start of the third quarter as uncertainty and its acquisition of companies and entrepreneurs increased because of Brexit, which weighed on the growth rate of new orders.
According to the Markit Bureau of Statistics, the PMI of the sector fell in July from 55.1 to 53.5 points, below expectations of 54.7 points, while the new orders recorded the slowest pace of growth since August 2016. The statistics showed that rising staff wages and rising fuel bills led to another strong increase in the average cost burden in July.
The statistics office said following the release of the data that it was difficult to identify specific reasons for the slow growth of the sector, but some attributed it due to hot weather and the World Cup impact on consumer demand. But he stressed that whatever these reasons are only temporary factors in the short term.
