Taipei, Taiwan, July 09, 2019 --(PR.com
)-- Everitt Lawson Group analysts say the UK economy may have contracted in the second quarter of this year as recent data has revealed the negative impact of Brexit uncertainty and a global economic slowdown.
UK manufacturers reported their worst month since 2013 and consumer borrowing increased at its slowest pace in almost 6 years. The British manufacturing purchasing managers' index (PMI) dropped to a dismal 48.0 last month, well below the 50.0 mark that separates growth from contraction. Everitt Lawson Group analysts reported that this was the third consecutive month of contraction in the manufacturing sector and blamed high stock levels and waning domestic and export demand for the slump.
Everitt Lawson Group analysts added that a lack of new orders had helped to push June’s PMI to its lowest level in almost seven years.
Last month, the Bank of England slashed its growth predictions for the second quarter of this year to zero and business optimism reached one of the lowest levels recorded in history during the course of the month. Everitt Lawson Group analysts say many firms are growing increasingly concerned about the country’s economic outlook given the weaker global demand and prolonged uncertainty surrounding the outcome of Brexit.
Everitt Lawson Group analysts believe the UK economy will not have grown in the second quarter and given the recent data, the Bank of England may need to reconsider its plans to hike interest rates which it recently signaled its intention to do.