Weak UK services PMI data highlights the drag from global growth concerns and Brexit worries

Data released earlier on Thursday showed that seasonally adjusted Markit/CIPS UK Services PMI fell to 52.7 in February, from 55.6 in January. The reading was the lowest since March 2013 and suggests the UK economy has lost momentum ahead of the Brexit vote.

Details showed that new contracts received by UK service providers rose at the weakest pace in almost three years. Services employment rose at the slowest pace in two-and-a-half years and the rate of inflation remained historically weak, amid reports of lower fuel and energy prices.

"We feel that as the referendum approaches, businesses will become more cautious on hiring new workers and implementing investment plans, which will likely see growth rates slow." said analysts at ING.