UK Economy Shows First Signs Of Slowing Down

After a strong end to 2016, the first signs of a slowdown have been revealed with the service sector showing signs of strain.

The rate of growth seen in the service sector was the lowest for five months according to figures released in February, which matter because the sector makes up three quarters of the UK economy.

If areas such as finance and hospitality are struggling this will almost certainly have a knock-on effect on the rest of the economy.

Inflation hit 1.8% in January with analysts predicting that the rate could well hit 3% in the next 12 months as the fall in the value of the UK pound continues to bite.

The pound was hit hard following the UK’s decision to leave the EU as its value plummeted against the dollar and the Euro.

Worse could follow as every negative announcement regarding the UK economy triggers another drop in value.

The one positive which can be taken from recent results is that the UK economy is still expected to grow in the first quarter of 2017 even if it has lost some of the momentum seen in the final quarter of 2016.