Britain’s manufacturers are suffering even more than expected in the immediate aftermath of the UK’s vote to leave the European Union, according to the latest data released by Markit on Monday morning.
Markit’s data shows that Britain’s manufacturers hit just 48.2 in July, well below the 49.1 flash estimate released on July 22. That number represents a low not seen since the beginning of 2013.
The purchasing managers index (PMI) figures from Markit are given as a number between 0 and 100.
Anything above 50 signals growth, while anything below means a contraction in activity — so the lower the number is, the worse things look for the UK.
Speaking about the data, Markit’s chief economist, Chris Williamson, said (emphasis ours):
“Though these falls were not as marked as those seen during the Great Recession in 2007-2008, the drop was harsher than expected. The overall index was at its lowest since February 2013 and lower than reported by the recent flash PMI, which measured the effect of continuing uncertainty and the immediate impact of the EU referendum on the UK economy.
“Purchasing prices rose at levels not seen for half a decade, with SMEs bearing the brunt of rising input prices while larger corporates were more able to cope. And though export orders rose for the second month in response to the weaker pound, this was not enough to sustain the sector or make up any shortfall from the sluggish domestic market”
And here is Markit’s terrifying chart, showing just how massive the contraction in post-Brexit Britain has been so far: