Britain's service sector slowed down last October as PMI fell from 53.9 to 52.2 points, according to data from the Markit Bureau of Statistics, its lowest level since March.
Looking at the details, we find that business activity is improving at a moderate pace, while the growth rate of new orders is the slowest since July 2016. The main reason for this slowdown is that investors are cautious about local conditions because of the Brexit and uncertainty of global economic outlook. This is due to the high fuel prices, which have caused an increase in the burden on consumers.
The statistics pointed to a sharp increase in input prices, which are mainly related to transportation costs and higher staff wages as sterling depreciates. Some businesses have expressed their optimism about the sector's investments in the coming period. Following the release of the data, the Census Bureau announced its GDP growth forecast of only 0.2% during the fourth quarter of this year
