The British service sector, particularly holds greater importance in UK economy, has been feeling unnerving uncertainty and a gloomier working atmosphere ahead of an upcoming divorce deal with European Union.
Given the growing grudge surrounding the Brexit in UK House of Commons, possibility of a hard-Brexit or no-deal Brexit are getting intense and a whammy over wobbling UK economy had started to display a contemptuous outlook towards domestic growth.
According to the Purchasing Managers’ Index data released on Tuesday, the 5th of February, 2019, the service sector had experienced a sharp decline in January to 50.1 points, the weakest level since July, 2016.
Since 50.0 points are considered to be the barometer to scale up a nation’s growth, the British economy has been edging towards a seeping shrinkage. Data from the research institute HIS Markit/CIPS on UK PMI surprised the overall market atmosphere, dragging down the Great Britain Pound below 1.2950 after a highly volatile trading day, while the contrarian UK FTSE 100 experienced a heavy gain of 2.04% to 7,177.37, at the day’s market closure, mostly heaved by an upbeat crude oil stocks.
Ahead of a chaotic Brexit, the UK economy had lost a substantial scale of momentum in last December, and after the service sector index reflected an overall depiction of UK economy, since the service sector PMI dropped a record 1.1 point to 50.2, from December’s 51.2.
For the first time over six years, the employees in UK are facing a daedal distress over an imminent recession risk, as HIS Markit Chief economist, Chris Williamson had been quoted saying that the companies would likely to avert the risk appetite and, in the wake of a weaker demand and political uncertainty, the businesses would likely to reduce overcapacity.