British pound tumbles amid slowdown in service sector drags economy

British pound

The British pound finished weaker on Friday session and touched its fresh record low versus the US dollar after reports showed that UK’s service sector growth eased and hit its five month low, which gave the country’s overall economy some wounds.

Sensitive to Data

UK’s pound sterling showed sensitivity on ethe recent economic data as it finished the week on a low note, giving up its strength against major rivals.

The pound slipped 0.7% against the euro to settle at 1.1584, its worst price in nearly a month while it logged to its 33-day low versus the US dollar after losing 0.3% at 1.2234.

The decline on the currency was brought up by the batch of economic data released last Friday, with the country’s Services PMI Business activity index sliding at 53.3 in February from 54.5 in January and missing the experts’ forecast of 54.

The figure was still above the 50-level which separates growth from contraction but it showed that the business activity in the country was at its slowest pace since September 2016.

Some respondents believed that the slowdown in the service sector was due to cautious spending among consumers as Great Britain has been hounded with political uncertainties, with the formal Brexit process on the table, which further pushed British pound down to its lows.

Despite the disappointing turnout on the service growth, business confidence remained strong as the index was little changed at 53.2, still in line with its previous reading last year.

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