important indicator of the health of the British economy has found
there has been a steep decline in economic activity since the country
voted to leave the European Union.
Markit Purchasing managers index (PMI) - which measures the mood in
the manufacturing and services sectors - has fallen at its sharpest
rate since 2009.
survey, which is done every month and is widely watched by economists
and financial markets, found that both output and new orders fell in
July for the first time since 2012.
among service industry companies was at its lowest in seven and a
survey report suggested uncertainty following the UK vote was a major
IMF's managing director Christine LaGarde has called for clarity
about the country's relationship with the global economy.
Williamson, chief economist at IHS Markit, said the downturn had been
"most commonly attributed in one way or another to 'Brexit'."
added that the economy could contract by 0.4 percent in the third
quarter of this year, but that would depend on whether the current
only other times we have seen this index fall to these low levels,
was the global financial crisis in 2008/9, the bursting of the dot
com bubble, and the 1998 Asian financial crisis," Mr Williamson
difference this time is that it is entirely home-grown, which suggest
the impact could be greater on the UK economy than before.
is exactly what most economists were saying would happen."
subset of the PMI figures, shows that service companies, such as
insurance or advertising, are feeling less positive about the future
than at any time since the height of the recession.