UK economy wilts after Brexit as PMI dips most in 20 years

London

BRITAIN'S economy is shrinking, the broadest survey of business confidence since last month's historic vote to quit the European Union (EU) showed on Friday, piling pressure on new Prime Minister Theresa May's government to soften the impact.

Philip Hammond, the new finance minister, had already hinted at loosening the national purse strings.

The flash, or preliminary, Markit survey of purchasing managers - executives who make spending decisions at 1,250 big firms - fell by the most in its 20-year history.

It was consistent with an economy contracting 0.4 per cent in the third quarter, contrasting with an actual reading of plus 0.4 per cent in the first quarter.

"July saw a dramatic deterioration in the economy," said Chris Williamson, Markit's chief economist. "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 w…