The purchasing managers' index from IHS Markit/CIPS showed that the services sector shrank for the first time in almost three years last month. Catherine McGuinness, Policy Chair at the City of London Corporation, said:

“The slump in the services sector is an extremely worrying development, demonstrating the real strain that continued uncertainty is putting on the economy. Businesses up and down the country are cutting back on investment amid the Brexit limbo that has gripped the country since 2016.

“This is a timely reminder that a thriving services sector is crucial to a healthy UK economy. It accounts for 80% of the UK economy and it is high time that this is recognised by politicians. We therefore welcome today’s talks between the Government and Opposition and hope that they can put their differences aside to find a pragmatic solution that puts people and business first, commits to protecting the services sector and provides much needed certainty.”

ENDS

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk