Business activity recovers but remains weak
- Britain’s dominant service sector, which accounts for about 80% of the economy, recovered in December amid a rise in new work, according to closely watched surveys of business activity.
- The reading on the IHS Markit and the Chartered Institute of Procurement and Supply services purchasing managers index (PMI) rose to 50.0, up from 49.3 during November, to signal stabilisation in the sector that includes hotels, restaurants and the City.
- The reading was better than expected on a scale where 50.0 separates growth from decline.
- However, taken together with PMI readings for the construction industry and manufacturing sector, economists said the economy probably failed to grow in the fourth quarter because of Brexit and political uncertainty.