Economics
Brexit Wreaks Havoc on U.K. Economy as Recession Risk Increases
- Markit’s composite U.K. PMI dropped to seven-year low in July
- Economists say survey makes BOE action in August more likely
Schulz: Brexit a Risk for U.K., European, Global Economy
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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.