UK service sector slumps into stagnation

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The service sector in the UK grew in January slower than expected and approached stagnation. The number of new orders in the sector declined for the first time in two years. The index of business activity in the service sector fell to 50.1 in January from 51.2 in December. Analysts had expected a decline to 51 points. However, the value still remains above the mark of 50 points. A figure below 50 indicates a decline in activity. The figures of January were minimal in 2.5 years. This decline in activity has been observed for the second time since the end of 2012. The composite PMI index fell to 50.3 points from 51.5 points in January. Analysts' forecast stood at 51.5 points. The PMI value was the lowest in more than six years. According to the chief business economist at IHS Markit, the UK is at risk of slowing down or deteriorating of the economy. This is due to the uncertainty of the Brexit deal and the weak growth of the global economy.

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