The latest purchasing manager surveys of Britain's services industry showed growth in the country's dominant business sectors slowed further in August.
Consumer-facing sectors showed the worst performances in the purchasing manager data, which echoed a survey by the British Retail Consortium published at midnight, that showed growth in terms of volume was slowing.
Purchasing managers' index (PMI)
While business in the services sectors continued to expand in August, it did so at a slower pace than in July, with the headline PMI dropping to 53.2 from 53.8 and missing analyst forecasts of 53.5.
Survey respondents noted "subdued client demand" and "heightened uncertainty" over the economic outlook weighed on growth in August. Indeed, new order volumes rose at their slowest pace in 11 months.
Respondents also said that fragile business confidence related to uncertainty over the path of Brexit negotiations had led to delayed spending decisions from clients.
Inflationary pressures building
The PMI survey also indicated cost pressures were building up as input price inflation rose at its fastest pace since February due to higher staff costs and prices for imported items.
Some respondents suggested that recent exchange rate depreciation against the euro would also likely drive up costs in the near-term.
Chris Williamson at IHS Markit, which compiles the PMI survey, said the data was unlikely to add any further pressure on the Bank of England to raise interest rates, despite consumer inflation currently running at an above target 2.6%.
He said: "The overall level of the PMI remains more consistent with policymakers erring towards stimulus rather than hiking interest rates, suggesting the doves will continue to outnumber the hawks."