Lower consumer spending began to hit UK service companies in February, with growth slowing to a 5-month low, a sign of little promise for the economy before its separation from the European Union, a survey showed on Friday.The British Services Purchasing Managers' Markit / CIPS index fell to 53.3 from 54.5 in January, the lowest level since September and failing the average expectations of 54.1 in a Reuters poll of economists.Along with construction and start-up data from the beginning of the week, Markit says these numbers suggest that growth in the first quarter is on the way to slowing to a sub-par of 0.4 pct from a strong 0.7 pct in the last 3 Months of 2016.With finance minister Phillip Hammond putting the finishing touches on his first annual budget, which will be presented on March 8, the figures are likely to reinforce his sentiment that the strong growth of the UK recorded since last year's vote to leave The European Union will end.Although the British economy has expanded faster than most of its developed world peers in 2016, many economists think rising inflation will soon begin to weigh on consumers and corporate profit margins.Some of the companies surveyed have announced a pattern of prudent spending for British consumers, corroborating recent weak retail sales data suggesting a slowdown is under way.In contrast, data from the Confederation of British Industry last night show the growth of the private sector rekindling in the three months to February.
