Weak Pound lifts off services from gloom

According to a  survey of business executive the services sector industries were helped by weaker pound partially offsetting the manufacturing and  construction industries’ woes.

The IHS Markit Purchase managers’ index for services rose to 51.4 in July 2019 from 50.2 in June 19, the highest since October 2018.

Although service activity grew in July, the fundamental weakness remain in sector pinned down by Brexit uncertainty and increasingly stagnant global economic growth. In July better incoming sales abroad thanks to weaker pound. Brexit continue to weigh down on delayed decision-making, rising import prices and weakened business optimism. Service businesses also reported a sharp increase in cots with companies citing the weak pound, higher staff wages and greater fuel prices as reasons for rising business expenses.

The improvement in the services activity partially offset the poor performance of manufacturing and construction, which both reported  PMI reading below 50 mark.