Economics
Services Bring U.K. Economy to a Near-Halt Ahead of Brexit
- Gauge falls to 2 1/2 year low, Markit says economy may stall
- Uncertainty about exit from the EU is hurting investment
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The U.K. economy is at risk of stalling after growth in the services sector came close to a standstill, with firms growing increasingly anxious about Brexit.
The purchasing managers index for services dropped to a 2 1/2-year low in January, IHS Markit said in a survey, falling more sharply than economists had forecast. Companies said they were less likely to start new projects and that clients were spending more cautiously because of a lack of clarity around Britain’s departure from the European Union.