Brexit Wreaks Havoc on U.K. Economy as PMI Tanks

This from Bloomberg.

The U.K.’s decision to leave the European Union inflicted an immediate blow on the economy as business activity shrank at its fastest pace since the last recession seven years ago.

In the weeks following Brexit, there was a “dramatic deterioration,” Markit Economics said in a one-time report published Friday. Services and manufacturing shrank and a gauge of the private-sector economy plunged to 47.7, well below the 50 level that divides expansion from contraction.

The U.K. PMI numbers were released early on Friday, July 22nd to give an indication regarding the impact of Brexit and the results are not good. Manufacturing and Services PMI fell below 50, which indicates contraction.

UK_MfgPMI_160722 UK_SrvcsPMI_160722
The U.K economy was already showing stress and the politically driven Brexit exacerbated it.

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