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British service sector growth eased more-than-expected in July to the weakest level in three months, survey data from IHS Markit showed Friday.
The IHS Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index dropped to 53.5 in July from 55.1 in June. The index was forecast to drop to 54.7.
However, any reading above 50 indicates expansion in the sector.
Growth in new orders moderated in July and was softer than seen on average over this period.
Panelists revealed that delayed decision-making and greater risk aversion among clients in response to Brexit uncertainty had held back new business growth in July.
Service providers raised their employment levels at the weakest rate for almost two years in July amid tight labor market conditions and rising wage pressures.
On the price front, input price inflation remained strong in July, but eased from June's nine-month high. Selling prices also increased at a solid pace.
