March data from IHS Markit signalled a marginal reduction in business activity across the UK service sector, which ended just over two and-a-half years of sustained expansion. The downturn in service sector output reflected a lack of new work to replace completed projects so far in 2019. Survey respondents noted that corporate clients had opted to delay spending decisions in response to intense political uncertainty. There were also some reports that Brexit concerns and worries about the economic outlook had held back household spending.

At 48.9 in March, down from 51.3 in February, the headline seasonally adjusted IHS Markit/CIPS UK Services PMI Business Activity Index posted below the 50.0 no-change mark for the first time since July 2016. Economists had expected decrease to 50.9. Aside from the brief dip seen after the EU referendum, the latest reading was the joint weakest seen over the past decade (equalling the previous low point recorded in December 2012).