UK Services Sector Shows Weakest Growth in 3 Years Amid Brexit Referendum

© AFP 2022 / Justin TallisA pedestrian shelters from the rain beneath a Union flag themed umbrella as they walk near the Big Ben clock face and the Elizabeth Tower at the Houses of Parliament in central London on June 25, 2016
A pedestrian shelters from the rain beneath a Union flag themed umbrella as they walk near the Big Ben clock face and the Elizabeth Tower at the Houses of Parliament in central London on June 25, 2016 - Sputnik International
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Growth of UK service sector activity weakened in June and reached a record low level within 38 months after the Brexit referendum, according to report of Markit/Chartered Institute of Procurement & Supply (CIPS).

MOSCOW (Sputnik) — The United Kingdom's service sector growth has reached a record low level within 38 months amid uncertainty related to the Brexit referendum in the country, according to a news release published by Markit/Chartered Institute of Procurement & Supply (CIPS) on Tuesday.

"Growth of UK service sector activity weakened in June to match the 38-month low recorded in April… Companies often reported that uncertainty linked to the EU referendum had weighed on workloads and incoming new business," the news release reads.

Britain's Chancellor George Osborne speaks at the Bank of England's Open Forum 2015 conference in London, Britain in this file photograph dated November 11, 2015 - Sputnik International
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According to the news release, UK services expansion during the second quarter of 2016 was the weakest since the first quarter of 2013.

On June 23, the United Kingdom held a referendum to determine whether or not the country should leave the European Union. According to the final results, 51.9 percent of voters, or 17.4 million people, decided to support Brexit, while about 16.1 million opposed it.

The referendum outcome has already caused turbulence in the UK economy. The Fitch Ratings and Standard & Poor's agencies downgraded the country's long-term financial risk rating to AA with a negative outlook, while the UK pound has plunged to the lowest level against the dollar since 1985.

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