Confidence Among UK Services Firms Hits Three-Year Low

Confidence in Britain’s dominant services sector fell to its lowest level in over three years in the three months to May ahead of the country’s European Union membership referendum in June, a survey showed on Thursday.

“Companies are sounding the warning bell as they get to grips with increasing uncertainty,” Rain Newton-Smith, the Confederation of British Industry’s director of economics, said.

As well as the EU vote on June 23, volatility in global financial markets earlier this year and a slowdown in the world economy also weighed on British services firms, the CBI said.

However, business conditions and demand were holding up reasonably well, Newton-Smith said.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.