U.K. business optimism plunges in the wake of election

The optimism of Britain’s businesses is fading with their growth forecasts down to the lowest levels since the panic after last year’s Brexit vote.
Growth in the dominant services sector slowed down in June as new orders dipped and expectations of future demand also lost steam following the chaotic general election result.
The purchasing managers’ index, compiled by IHS Markit, fell to 53.4 in June, down from 53.8 in May. That is still above 50 and so indicates growth, but economists fear the pace will keep on slowing into the second half of the year.
Overall the surveys of the manufacturing, construction and services sectors point to GDP growth of 0.4pc in the second quarter, an improvement from 0.2pc in the first three months of the year.
But Chris Williamson, IHS Markit’s chief business economy, sounded a not of warning: “It’s clear that the economy heads into the third quarter losing momentum.”

This post was published at The Telegraph