British pound stands still amid slowing UK service sector output
On Thursday, the British pound was steady against the greenback notwithstanding data showing that in April British service output surged at the slowest rate for three years, thus contributing to fears that the UK’s economy is losing its momentum.
The currency pair GBP/USD last traded at 1.4477 ahead of the data.
In April, the Markit UK services purchasing managers’ index sagged from 53.7 to 52.3. That appeared to be the lowest level since February 2013. Furthermore, it ruined experts’ expectations for 53.5.
The service sector was affected by uncertainty over the EU’s membership referendum planned on June 23, that delayed new orders. Moreover, the sector was also hit by the introduction of the new living wage, that has contributed to cost hikes for employers.
The report arose after similar surveys of the construction and manufacturing sectors indicated struggling growth at the start of the second quarter.
The rate of job creation within the three sectors dropped to the weakest for two-and-a-half years.