New Data: UK Economy Hurt by Slumping Services Sector
Recent reports have painted a bleak portrait of UK economic growth, which has nearly stalled. The Purchasing Managers’ Index (PMI) surveys revealed that there was only 0.1 per cent growth for the month of April. An explanation for such a significant slowdown may be due, in part, to the services sector, which grew at its slowest pace in three years—with a PMI reading of 52.3 in April, down from 53.7 in March. While any reading above 50 indicates growth, the data has not been well received, as the services sector comprises 80 per cent of the UK economy, according to the Financial Times.
Uncertainty over the Brexit is the chief cause of the current stilted growth. As customers—both British and international—are unsure of the outcome and its potential effects, they have refrained from purchasing large items and shied away from impulse buys. Brexit uncertainty, coupled with the start of the National Living Wage in April, have further squeezed cost margins.
However, despite the declining services sector, there are strategies you can employ to survive the current economic uncertainty, such as the following:
- Investing in apprenticeships, which have been made cheaper by new government regulations
- Taking advantage of the international community’s demand for British-made goods in the online marketplace
For more information on how to ensure that your business is robust enough to weather the current economic climate, contact the professionals at CIEEM Insurance Services today.
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