LONDON, April 3 (Xinhua) -- British services purchasing managers' index(PMI) in March fell below the 50.0 no-change mark for the first time since July 2016, according to figures released Wednesday by IHS Markit, a London-based global information provider.
Data showed the seasonally adjusted services PMI declined to 48.9 in March, down from 51.3 in February, suggesting the sector ended the over two and a half years of sustained expansion.
In addition, the seasonally adjusted All Sector Output Index was 50.0 in March, down from 51.4 in February.
Chris Williamson, chief business economist at IHS Markit, said that: "A drop in service sector activity indicates that UK GDP contracted in March, with the economy stalling over the first quarter as a whole and at risk of sliding into a deepening downturn in coming months."
Williamson analyzed that the underlying demand was even worse than the figures showed, adding that "service sector order books have contracted at the steepest rate since the height of the global financial crisis in 2009 so far this year, with companies reporting that Brexit uncertainty has dampened demand and led to cancelled or deferred spending, exacerbating a headwind from slower global economic growth."
"Such a scenario leaves the current consensus forecast for the UK economy to grow 1.3 percent in 2019 looking far too optimistic," said Williamson.
"IHS Markit currently expects to see just 0.8 percent growth in 2019, and even this modest performance is perhaps somewhat hopeful given the recent lack of any Brexit developments," Williamson added.
