Special flash report from Markit now out 22 July 2016
- 52.1 prev
Better beat on mftg but the all important services was horrible. Reality check time
GBPUSD 1.3192 in a rush. I hope you all sold into that pre-release rally. Strong offers/res between 1.3290-133300 that I highlighted.
EURGBP up through decent offers/res into 0.8360 to post 0.8370 before capping.
Chris Williamson, Chief Economist at Markit, which compiles the survey:
"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. "The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to 'Brexit'.
"The one ray of light was an improvement in manufacturing export growth to the best for two years as the weak pound helped drive overseas sales, though producers also suffered the flip-side of a weak currency as import prices spiked higher.
"At this level, the survey is signalling a 0.4% contraction of the economy in the third quarter, though much of course depends on whether we see a further deterioration in August or if July represents a shock-induced nadir. Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least.
"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."
Full Markit report here
I'm sure Carney & Co will be trawling through it with great and alarming interest.
