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Brexit shock pushes UK services and manufacturing into contraction says new survey Brexit shock pushes UK services and manufacturing into contraction says new survey
(35 minutes later)
The Brexit shock has hit the economy hard according to a special set of surveys of businesses taken in the wake of the European Union referendum vote, which will significantly increase the odds of major monetary stimulus from the Bank of England next month. The Brexit shock has hit the economy hard according to a special set of surveys of businesses taken in the wake of the European Union referendum vote, which suggest the UK economy is now contracting at its steepest pace since the last recession in early 2009.
Markit/CIPS surveys taken in recent weeks suggests that activity in both the UK’s services and manufacturing sectors fell into contraction. The “dramatic deterioration” will significantly increase the odds of a major monetary stimulus from the Bank of England next month to support the economy.
Markit/CIPS surveys conducted in recent days suggests activity in both the UK’s services and manufacturing sectors have slipped  into contraction in the wake of the vote.
The reading for the services sector in July was 47.4, well below the 50 mark that signals growth. The reading for manufacturing was 49.1The reading for the services sector in July was 47.4, well below the 50 mark that signals growth. The reading for manufacturing was 49.1
The pound instantly sank to $1.3190, having been trading at $1.3272 previously “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” said Chris Williamson, chief economist at Markit. 
This was a special set of Purchasing Managers’ Index surveys by Markit/CIP, taken and released earlier than normal to give an indication of how the private sector was responding to the surprise vote by the UK electorate to leave the European Union. “At this level, the survey is signalling a 0.4 per cent contraction of the economy in the third quarter…With policymakers waiting to see hard data on the state of the economy before considering more stimulus, the slump in the PMI will provide a powerful argument for swift action.”
The manufacturing PMI reading for in May had been 52.1 and for services it was 52.3. The pound instantly sank around a cent to $1.3187, in the wake of the release, having been trading at $1.3272 previously.
More follows This was a special set of Purchasing Managers’ Index surveys by Markit/CIPS, taken and released earlier than normal to give an indication of how the private sector was responding to the surprise vote by the UK electorate to leave the European Union. It was based on 85 per cent of the usual responses from purchasing managers.
The manufacturing PMI reading in the previous month had been 52.1 and for services it had been 52.3.