UK services sector stagnates on Brexit fears

Sterling fell against the euro and the dollar yesterday as a key survey suggested the UK’s services industries, which includes its giant finance industry, is coming close to stagnating because of the uncertainty of Brexit.

UK firms in the services sector reported job cuts for the first time in six years and falling new orders, according to the IHS Markit-CIPS Purchasing Managers’ Index. The headline reading fell back to 50.1 in January, where any reading below the no-change 50 level means the sector is contracting. Sterling traded lower at 88.17p against the euro and fell sharply against the dollar to $1.293.