Recession fears mount as UK economy shrinks at fastest rate since 2009 – business live

Recession fears mount as UK economy shrinks at fastest rate since 2009 – business live
British business activity has slumped as clients cancel orders and postpone projects, survey shows

• Latest: UK economy suffers ‘dramatic deterioration’ in July
  
• Data suggests economy will shrink by 0.4% this quarter
  
• Service sector companies are really gloomy
  
• Analyst: Recession here we come....
  
• Pound hit by grim PMI report
  

Analyst: A truly abysmal picture of the UK economy

Neil Wilson of ETX Capital says the UK PMI survey is “truly abysmal”, and suggests that the EU referendum vote has - as feared - hit the economy.

“Today’s super-weak PMI is the first hard evidence that Brexit has already had an impact on the UK economy. There was a sharp fall in activity in July and it now looks like the Bank of England has the data it needs to launch fresh easing at its next meeting at the start of August.
Quite simply, the UK economy contracted at the fastest pace since the start of 2009, when the global financial crisis plunged us into recession.
The readings suggest we are heading for a recession again and it is almost certain the BoE will pull the trigger on aggressive stimulus to boost aggregate demand.

UK economy hit by Brexit: What the experts say

Sam Tombs of Pantheon Economics says today’s PMI report is ‘woeful’, and should prompt the Bank of England to cut interest rates.

Woeful PMI points to a 50bp cut in Bank Rate to 0% in Aug. But with inflation set to soar, a 25bp cut seems likelier




More at https://www.theguardian.com/business/live/2016/jul/22/surveys-brexit-impact-uk-eurozone-g20-lagarde-sports-direct-live?page=with:block-5791e0b2e4b04bde3e82be99#block-5791e0b2e4b04bde3e82be99



EU Composite PMI is holding up and rising gradually, ours?  going down.

The scary thing is this is one of the most respected and accurate survey companies. The Brexit reality is kicking in.

It certainly is and it is one of the best indicators of how an economy is functioning.