The “lifeblood” of the UK’s dominant services sector is leaking away thanks to Brexit uncertainty, industry experts warned today.
The Chartered Institute of Procurement & Supply said the economy was close to stagnation in the first quarter despite a modest rise in the pace of expansion last month.
Its latest activity index, where a score over 50 signals growth, was up from 50.1 to 51.3 in February.
But services, ranging from hotels to accountants and IT firms, are on course for their worst three-month spell since 2012.
Jobs are vanishing at the fastest pace since 2011 while lower backlogs of work were attributed to Brexit-inspired delays.
Cips director Duncan Brock said: “Once again this month, the lifeblood of the sector continued to leak away with Brexit indecision striking another blow to new orders and employment in February... The first quarter of 2019 is set to be a disappointment.”
Chris Williamson, chief business economist at survey compiler IHS Markit, said: “Worse may be to come when pre-Brexit preparatory activities move into reverse.”
