UK Services Industry Growth Slows

UK services industry remained cool in June as customers either cancelled or postponed orders ahead of Brexit.

The gauge of uk services decreased from 53.5 in May to 52.3 in June, hitting a 38-month low, Markit Economics said on Tuesday. The figure was below economists forecast of 52.8.

According to Markit, the combination of manufacturing, construction and services indicates that growth slowed to 0.2 percent in the three months through June.

“A further slowing, and possible contraction, looks highly likely in coming months as a result of the uncertainty created by the EU referendum,” Chris Williamson, chief economist at Markit, said in the report. “Hiring has also clearly been hit as firms lack clarity on the economic outlook.”

“It’s unlikely that policy makers will wait for more data before unleashing additional monetary stimulus,” Williamson said. “More policy action is therefore likely in the coming weeks.”

But with 89 percent of the survey response coming in before June 24, it is safe to say this data does not reflect current economic situation post-Brexit.

The central bank is expected to announce its next monetary policy decision on July 14.