UK falling behind eurozone economic upswing

Britain’s economy is falling further behind a fast-recovering eurozone as firms worry about Brexit and consumers feel the pinch of rising inflation and the weak pound, the latest surveys showed.

Manufacturers are benefiting from increasing demand in Europe and beyond, but the much bigger UK services sector grew at its weakest pace in nearly a year in August, according to the IHS Markit-CIPS services Purchasing Managers’ Index.

The world’s fifth-biggest economy initially withstood the shock of the June 2016 vote to leave the EU, which will remodel its ties with its biggest trade partners.