UK private sector announces sluggish underlying growth: CBI

LONDON (Reuters) – The British private sector has announced weak underlying growth last month as uncertainty about Brexit continues to weigh on many companies, the Confederation of British Industry announced on Sunday. .

According to official data, the UK economy has experienced strong growth in the first three months of this year, fueled in part by the establishment of warehouses of raw materials in factories, in anticipation of the Brexit that did not have place as planned on March 29th.

However, some business surveys have revealed a weakness since then, and the Bank of England has forecast a slowdown in the second quarter due to the deceleration in rising inventories.

The IWC has indicated that its monthly growth indicator dropped to -1 in May, after zero in April.

"Private sector activity remains neutral, the situation in the service sector being particularly bad," said CBI economist Alpesh Paleja. "Businesses continue to report the lingering uncertainty badociated with Brexit uncertainty, which is holding back key projects, work in progress and investments."

Last week, the CBI wrote to conservative lawmakers to allow them to succeed Theresa May as prime minister, urging them to avoid a Brexit without agreement, for which the "vast majority" of companies were unable to prepare.