Yael Selfin, Chief Economist at KPMG UK comments on the latest IHS Markit / CIPS UK Services PMI figures.
Commenting on the latest IHS Markit / CIPS UK Services PMI figures, Yael Selfin, Chief Economist at KPMG UK, said:
“Today’s PMI figures paint a picture of a resilient UK services sector in the face of Brexit uncertainties and growing price pressures. However the outlook for UK services remains relatively weak. The expectation for the sector’s contribution to the overall growth of the economy is slightly smaller for the second half of the year compared to the first six months of 2017.
“The latest PMI readings should give the Bank of England reason to pause before embarking on the first interest rate rise in a decade. The uncertainties around the progress of UK negotiations with the EU may cause further delays to business investment and spending plans this year. Given the weakening outlook for growth it may be wise for the MPC to wait until next year before beginning to raise rates, once the future path for UK business becomes clearer.”
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