No-deal Brexit fears prompt UK economy to flatline

Service sector firms rein in activity to levels last seen just after EU referendum

The risk of a disorderly Brexit caused the British economy to almost flatline last month as service sector firms reined in business activity to the weakest level since immediately after the EU referendum two years ago.

According to a shock health check from IHS Markit and the Chartered Institute of Procurement and Supply (Cips), the biggest sector of the economy, which includes banks, hotels and restaurants, recorded only very marginal expansion in output last month. It was the worst monthly data since the immediate aftermath of the Brexit referendum in July 2016.

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