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  • 07.22.16

First post-Brexit PMI figures suggest Britain will soon be in recession

Data firm Markit has released the first flash Purchasing Managers’ Indexes (PMI) report since Britain voted to leave the European Union last month. The PMI numbers are for July and paint a terrible picture of the prospects for the post-Brexit economy with Composite Output, Services Activity, and Manufacturing Output down to as much as 88-month lows. As Markit economist Chris Williamson told the Guardian:

July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009. The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to ‘Brexit’.”

The markedly lower PMI numbers in just the first month after the Brexit vote suggest the U.K. could soon be in a recession.

MG