A LEADING think-tank declared the UK economy was “still struggling to get out of a low gear”, weighed down by a consumer squeeze and Brexit uncertainties, after it emerged services sector growth remained sluggish in July.
The Chartered Institute of Procurement & Supply’s seasonally-adjusted business activity index for the key services sector edged up from 53.4 in June to 53.8 in July. While moving further above the level of 50 deemed to separate expansion from contraction, CIPS noted the index continued to point to “relatively subdued” growth.
Commenting on the services report, and citing manufacturing and construction sector surveys published earlier this week by CIPS, EY ITEM Club chief economic adviser Howard Archer said: “Overall, the July purchasing managers’ surveys point to an economy still struggling to get out of a low gear - hampered by squeezed consumers and major economic, political and Brexit uncertainties.”
Chris Williamson, chief business economist at CIPS survey compiler IHS Markit, noted the all-sector purchasing managers’ index was unchanged at 53.9 in July, “indicating that the rate of growth of business activity held steady on June’s four-month low”.
He added: “The survey is running at a level broadly consistent with [quarterly] growth of just over 0.3 per cent, putting the country on course for another steady but sluggish expansion in the third quarter.”
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