London: British economy has fallen to a seven-year low amid the ongoing financial consequences of the country’s decision to leave the EU, according to a study published on Friday. Data provided by the consulting firm IHS Markit, showed that the British economy had dropped to levels similar to those seven years ago when financial sectors suffered the aftermath of the global financial crisis of 2007-08, Efe news reported.
The figures showed the economy had taken a dramatic downturn, adding it could decrease further by 0.4 per cent in the third trimester of the year, Markit’s Chief Economist, Chris Williamson, said. Williamson attributed the downturn “in one way or another to Brexit”.
All of Britain’s financial sectors suffered a decrease in production since the triumph of “Brexit“, apart from exportation, which accelerated due to the weakening of the pound. With information collected from 650 businesses between July 12-21, Markit’s Purchasing Manager’s Index (PMI) put the state of the economy at 47.7, where a figure below 50 signifies contraction.
The drop comes following the high level of order cancellations since 2012 and a lack of confidence in the service sectors, according to the consultancy. Williamson said the economic effects of Brexit may level out over the course of several months.
The Bank of England is due to decide in its August meeting whether to alter its economic policy in light of the financial slowdown, which could include lowering interest rates or expand its quantitative easing programme. About 52 per cent of British voters opted to leave the EU in a membership referendum held on June 23. The Brexit result has had widespread economic and political consequences in Britain and around the world.