UK economy shrinking at fastest since '09

London

BRITAIN'S economy is shrinking at its fastest rate since the 2008-09 financial crisis, making a Bank of England (BOE) rate cut on Thursday "a foregone conclusion", the publishers of a closely watched business survey said.

Financial data company Markit said that the full version of its monthly Purchasing Managers' Index (PMI) on Wednesday showed a sharp hit to business activity from June's European Union (EU) vote, just as a one-off preliminary PMI did two weeks ago.

Chris Williamson, Markit's chief economist, said that the numbers pointed to Britain's economy shrinking by 0.4 per cent in the three months to September, a rate not seen since early 2009 when the BOE last cut interest rates. "The unprecedented month-on-month drop in the all-sector index has undoubtedly increased the chances of the UK sliding into at least a …