A month has passed since the U.K. left the European Union and British businesses are suffering.
On Friday, HIS Market (INFO) reported factory production and output statistics for July. Factory production and output for the month showed a significant decline. The U.K. hasn’t experienced such a sharp decline since the height of the global financial crisis.
Market’s flash purchasing managers’ index indicated the lowest economic slump in more than seven years after the referendum on June 23. Output and production fell for the first time since 2012.
Market’s services purchasing managers’ index records an 88-month low of 47.4 this month, a 4.9 decrease from last month. This is a clear indication of the deterioration of the British economy because services make up eighty percent of the U.K economy. The manufacturing index has also dropped to its lowest in more than three years.
In addition, the pound depreciated by twelve percent against the dollar since Brexit. This may help exporters but may also cause higher import costs for manufacturers.
