Brexit plunges UK economy to worst level since 2009, data suggests

[mentalfloss]

"This is exactly what economists were saying would happen."


Brexit plunges UK economy to worst level since 2009, data suggests

Data from IHS Markit's Purchasing Manager's Index, or PMI, shows a fall to 47.7 in July, the lowest level since April in 2009. A reading below 50 indicates contraction.

Both manufacturing and service sectors saw a decline in output and orders.

However, exports picked up, driven by the weakening of the pound.

The report surveyed more than 650 services companies, from sectors including transport, business services, computing and restaurants.
It is the first significant set of data measuring business reaction to the result of the UK referendum.

'Record slump'

Chris Williamson, chief economist at IHS Markit, said the downturn has been "most commonly attributed in one way or another to 'Brexit'.

"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."

Mr Williamson added that the economy could contract by 0.4% in the third quarter of this year, but that would depend on whether the current slump continued.

"The only other times we have seen this index fall to these low levels, was the global financial crisis in 2008/9, the bursting of the dot com bubble, and the 1998 Asian financial crisis," he told the BBC.

"The difference this time is that it is entirely home-grown, which suggest the impact could be greater on the UK economy than before."

"This is exactly what most economists were saying would happen."

Brexit plunges UK economy to worst level since 2009, data suggests - BBC News

 

[Blackleaf]

From the BBC?

I'm not buying it, then.

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Richard Fletcher ✔
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How reliable are the PMI numbers that have sent the £ spiralling? Asks @Investec's Chris Hare

11:27 AM - 22 Jul 2016

7 Retweets 6 Likes

 

[mentalfloss]

Your twitter account is more reputable?

Is Loc on there too? :lol:

 

[Machjo]

One purpose of the EU was to break down the kind of non-tariff barriers to trade that we find between Canadian provinces. In fact, the EU turned out to be more successful at this between its states than Canada has been between its provinces. Yet the UK decided to leave the EU to soon inherit the problems Canada faces and worse.

The new Brexit government had even turned to the Canada-EU free trade agreement for inspiration. The Canada-EU agreement gives Canada minimal access to the EU market and vice versa. It's a better-than-nothing agreement.

The Brexiters looking to Canada for inspiration are nuts.

 

[Blackleaf]

Your twitter account is more reputable?

Is Loc on there too? :lol:

It's not my Twitter account. It's a Telegraph journalist's. I don't use Twitter.

Yet the UK decided to leave the EU

Because the British people are fed up with unelected bureaucrats in Brussels and Strasbourg making most of their laws; fed up with having foreign judges in Strasbourg taking precedence over the UK's highest court and riding roughshod over the British constitution and telling British judges not to deport foreign criminals; fed up with people in the other member states having the freedom to live in Britain; and fed up with the EU eroding British sovereignty year on year.

As a result of all this the British, quite rightly, said "Enough is enough. We're off". Polls showed most voters were prepared to suffer a short-term economic hit in order to get back sovereignty, and there was a very high chance that Britain would have entered recession had it stayed in the economic basketcase that is the EU.

Britain is far better off outside the EU and will surge ahead of the remaining 27 member states economically as a result. Britain will be far more prosperous and free outside the EU.

 

[mentalfloss]

Telegraph lol

That's like rebutting CNN with Fox News.

 

[Machjo]

Great Britain will survive.

 

[Blackleaf]

Telegraph lol

That's like rebutting CNN with Fox News.

It used to be a great newspaper until, like so many other former great British institutions, it was taken over by a left-wing cabal.

Now it's riddled with PC articles and spelling and grammar mistakes.

 

[Jinentonix]

Oh look, suddenly the Canadian leftards care about what British economists have to say. Funny how they ignore those same economic experts (as well as immigration experts) when they state that Canada's immigration plan is unsustainable and will lead to disaster at current rates.

 

[Tecumsehsbones]

Oh look, suddenly the Canadian leftards care about what British economists have to say. Funny how they ignore those same economic experts (as well as immigration experts) when they state that Canada's immigration plan is unsustainable and will lead to disaster at current rates.

Meh, this is the guy who thought Wynne saying that Ontario was "on track" to eliminate the deficit next year was newsworthy.

 

[Blackleaf]

Oh look, suddenly the Canadian leftards care about what British economists have to say. Funny how they ignore those same economic experts (as well as immigration experts) when they state that Canada's immigration plan is unsustainable and will lead to disaster at current rates.

At least Canada can control all its immigration, unlike EU member states.

 

[mentalfloss]

Brexit Deals Heavy Hit to UK Economy but Eurozone Holds Up - NYTimes.com

 

[Machjo]

At least Canada can control all its immigration, unlike EU member states.

And in exchange for that, Canada has a better-than-nothing trade deal with the EU too. The good news for Canada is that due to geography, we depend much less on the EU than you do. If we had the same better-than-nothing deal with the US, we'd quickly become an economic has-been. That could still happen with Trump tearing up NAFTA.

If the US gave Canada the ultimatum 'free movement of people or no free trade,' we'd be just as stupid to turn it down as the UK will be if it turns down the EU's same ultimatum.

Why do you think the UK PM is so hesitant to trigger Article 50? Because she has a head on her shoulder and knows she's stuck in a terrible catch-32: free movement of people or no market access. Take your pick.

 

[Angstrom]

And in exchange for that, Canada has a better-than-nothing trade deal with the EU too. The good news for Canada is that due to geography, we depend much less on the EU than you do. If we had the same better-than-nothing deal with the US, we'd quickly become an economic has-been. That could still happen with Trump tearing up NAFTA.

If the US gave Canada the ultimatum 'free movement of people or no free trade,' we'd be just as stupid to turn it down as the UK will be if it turns down the EU's same ultimatum.

Why do you think the UK PM is so hesitant to trigger Article 50? Because she has a head on her shoulder and knows she's stuck in a terrible catch-32: free movement of people or no market access. Take your pick.

The EU is not as great a deal as your making it out to be.

 

[coldstream]

Short term pain for long term gain.

Britain should now work to renationalize its economy in terms of trade, currency, investment to rebuild its rusted out industry. Its so called prosperity was an illusion only.. based on rigged GDP figures that recognized futile financial transactions as real wealth building enterprise.

The whole of Europe is living on a giant bubble of inflated values and collapsing production. It's a Ponzi scheme that would have collapsed sooner or later.

 

[Machjo]

Short term pain for long term gain.

Britain should now work to renationalize its economy in terms of trade, currency, investment to rebuild its rusted out industry. Its so called prosperity was an illusion only.. based on rigged GDP figures that recognized futile financial transactions as real wealth building enterprise.

The whole of Europe is living on a giant bubble of inflated values and collapsing production. It's a Ponzi scheme that would have collapsed sooner or later.

Canada's inter-provincial barriers are much better I presume, where workers' qualifications aren't even transferable between provinces in many cases.

 

[Tecumsehsbones]

Canada's inter-provincial barriers are much better I presume, where workers' qualifications aren't even transferable between provinces in many cases.

Ah, good old tu quoque fallacy. Ain't had one of those in three or four hours.

 

[Machjo]

Ah, good old tu quoque fallacy. Ain't had one of those in three or four hours.

Hey, we can't criticize the UK for free trade and then complain about inter-provincial barriers to trade in Canada. If protectionism is good for the UK, then it's good for Ontario too.

 

[Blackleaf]

Short term pain for long term gain.

Britain should now work to renationalize its economy in terms of trade, currency, investment to rebuild its rusted out industry. Its so called prosperity was an illusion only.. based on rigged GDP figures that recognized futile financial transactions as real wealth building enterprise.

The whole of Europe is living on a giant bubble of inflated values and collapsing production. It's a Ponzi scheme that would have collapsed sooner or later.

And don't forget that Britain is still doing much better than France and Germany, two core EU countries, and even China is slowing down.

Britain will be fine outside the EU. The EU needs Britain more than Britain needs the EU.

 

[mentalfloss]

Actually, Brexit caused it to fall behind France.