Newspaper article The Evening Standard (London, England)

Rate Cut Pressure Mounts on Post-Brexit UK Slump

Newspaper article The Evening Standard (London, England)

Rate Cut Pressure Mounts on Post-Brexit UK Slump

Article excerpt

Byline: NickGoodway

THE UK economy shrank at the fastest rate since the banking crisis immediately after the Brexit vote, an eagerly awaited survey showed today.

The services sector, which dominates the economy, has been hit hardest, with confidence crumbling and orders plunging. If that continues, the UK could shrink by 0.4% this quarter.

The pound fell almost a cent after the survey was released. Economists said the results meant it is now almost a nailed-on certainty that the Bank of England will cut interest rates next month.

Survey compiler Markit rushed out an early version of its purchasing managers's indexes to measure the immediate impact of the Leave vote. It compiled the data between July 12 and 21.

The composite index, which includes manufacturing and services, plummeted from 52.4 in June to 47.7. Any measure below 50 indicates the economy is shrinking.

Chris Williamson, chief economist at Markit said: "At this level, the survey is signalling a 0. …

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