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Recession Ahead in Britain? Factories Slow, Business Confidence Tumbles

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British manufacturing shrank at its fastest pace in more than three years in July and business confidence tumbled following the Brexit vote, according to surveys that show an increased chance of a recession ahead.

The news will give more impetus for the Bank of England to cut interest rates this week.

Falling output and new orders pushed a closely watched index of factory purchasing managers to its lowest since February 2013, adding to signs that Britain’s decision to leave the European Union is hurting the economy.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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