U.K. economic growth lost momentum in the first three months of the year as manufacturing and services sectors faced weaker domestic demand, results of a quarterly survey by the British Chambers of Commerce showed Monday.
Most key survey indicators were either static or decreasing, the survey, which based on over 8,500 responses from firms and the largest private sector study, showed.
The services sector saw domestic sales and orders reaching their lowest level for over three year, while manufacturing witnessed another fall in domestic sales that remained low in historical terms.
Some manufacturing sector indicators such as export sales and orders did improve, but from a very low base. Combined with the slight weakening in some areas of the dominant services sector, the Q1 figures suggest a static picture — with potential downside risks for UK economic growth ahead, the BCC said.
The number of manufacturing firms that increased workforce or plans to do so in future also declined. In services, the share of firms who struggled to boost workforce in the first quarter increased to its highest level in 18 years, while more firms expect to increase staff in coming months.
Pay pressures, meanwhile, eased, the survey said. Further, fewer firms plan to boost spending on plant and machinery in future.
"While the picture is static overall, there are clear indications that economic growth is continuing to soften," Adam Marshall, acting BCC director general said.
"From sales and orders to confidence and investment intentions, many of the business indicators we track are at a low ebb."
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