LONDON: Britain's key services sector grew at the slowest pace in almost one year in August on rising costs and uncertainty caused by Brexit, a leading survey showed on Tuesday.
The purchasing managers' index (PMI) for services fell from 53.8 in July to 53.2 in August, according to IHS Markit, which compiles the data.
This fell short of market expectations for a drop in the index -- which is regarded as a barometer of UK business activity -- to 53.5.
But it remained above the figure of 50 that indicates expansion.
The service sector, which accounts for about 80 percent of British gross domestic product, grew last month at the slowest pace since September 2016.
High inflation caused by a weak pound, in the wake of last year's vote in favour of Brexit, contributed to the slowdown.
"In services, the weaker growth trend was most evident in consumer-facing sectors such as hotels and restaurants and other personal services, which includes businesses such as cinemas, gyms and hairdressers," explained IHS Markit economist, Chris Williamson.
"The overall level of optimism also remained subdued, mainly linked to Brexit uncertainty, close to levels that have previously been indicative of the economy stalling or even contracting," he said.
Britain's Brexit negotiator David Davis on Sunday insisted that the country would not be forced into accepting unfavourable terms as the European Union complained that not enough progress had been made.
PMI data have painted a mixed picture of the British economy in August, with the construction sector index indicating a slowdown, while the manufacturing sector showed signs of growth.
Meanwhile, the number of new cars registered on Britain's roads fell 6.4 percent year-on-year in August, industry data showed Tuesday.
Private sector sales fell by an even steeper 9.9 percent owing to low consumer confidence about the future, the data showed.
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