UK PRIVATE SECTOR CONTRACTS MOST SINCE EARLY 2009

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LONDON (Alliance News) – The UK private sector activity contracted at the steepest pace since early 2009 after the “Brexit vote”, flash survey results from Markit showed Friday.

The flash composite output index fell to an 87-month low of 47.7 in July from 52.4 in June. A score below 50 indicates contraction.

The services Purchasing Managers’ Index dropped more-than-expected to 47.4, an 88-month low, from 52.3 in the previous month. The expected level was 48.8.

The manufacturing PMI came in at 49.1, down from 52.1 in June, but slightly above the expected score of 48.7. This was the lowest score in 41 months.

“The UK economy has suffered sharp falls in output and new orders following the EU referendum as uncertainty has taken hold,” David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said.

The true extent of the impact of this uncertainty still remains to be seen next month, Noble added.

Data was collected between July 12 and 21.

Copyright RTT News/dpa-AFX

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