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Brexit transition period will not be extended, according to Johnson’s spokesman

Prime Minister’s spokesman stated that the Brexit transition period will not see any extension beyond December 2020.

Optimism among companies in Britain’s dominant services sector had surged after Prime Minister Boris Johnson’s landslide election win, despite continued economic stagnation, a business survey showed on Monday.

The business expectations component of the IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) hit its highest level since September 2018, while order books increased for the first time in four months.

The overall PMI in December improved to 50.0 from a preliminary reading for the month – based on responses before the election – of 49.0. It was also higher than November’s 49.3.

Still, the index has not exceeded the 50 threshold denoting growth since August – the longest run below that mark since 2009 – and survey compiler IHS Markit said its readings were consistent with no growth in the economy in the fourth quarter.

Investors are watching for early signs of the impact of Johnson’s emphatic victory over the opposition Labour Party under left-wing leader Jeremy Corbyn, and sterling – already on a rising trend on Monday – rose modestly after the PMI report.

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