-Chris Williamson, Markit
More bad news for a post-Brexit Britain came as the July's flash manufacturing PMI figure fell dramatically against the June figure and missed expectations. This was one of the first PMI readings to have responses taken after the UK voted to leave the European Union on June 23. Markit's Purchasing Managers' Index in manufacturing fell to 49.1 points during the seventh month of the year, down from the 52.1 in June, when it had rebounded from its second-lowest level in the past 15 months and booked a fresh five-month top. Market consensus had been for a 50-point print in July.
Meanwhile, a separate report showed that activity in the country's services arena faltered to 47.4 during the reported month, steeply lower than 52.3 seen previously. That was the 88-month low or the lowest level since the economic crisis of 2009. Analysts had penciled in a deceleration to 49.2 points in July. The 50-point level marks the line between contraction and growth and the index has been volatile since the beginning of the year. The UK economy has been under pressure as Brexit-related uncertainty darkened the outlook for businesses. In the referendum last month, Britain voted to divorce the European Union, sending shock waves across global financial markets.
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