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Business

After Brexit, signs UK economy wilting fast

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Opening sequence

Business

After Brexit, signs UK economy wilting fast

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COMING UP:After Brexit, signs UK economy wilting fast

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00:00:00
>> The UK economy looks to be wilting fast after June's Brexit vote. A key gauge of sentiment and private firms plunging at record pace on Friday. The Purchasing Managers' Index, down about five points in July for the service sector, the biggest drop in its 20-year history. It's the first major piece of data produced since the June vote.
00:00:21
Survey compiler Market says it points to a shrinking economy in the coming three months. Other clues, equally ominous. I'm Reuters reporter Julian Satterthwaite. London shopping malls like this one, one of the first places to look for any signs of a Brexit impact. Among the key figures is footfall.
00:00:38
That's the number of people walking into stores. In June it was down at its sharpest pace in two years, with the period around the referendum the worst hit. Any blow to the service center would be critical. It makes up about four-fifths of the economy. The property market certainly looking wobbly.
00:00:56
Demand for commercial property down by the largest amount on record, according to surveyors. In the housing market, new buyer enquiries fell at their fastest pace since the global financial crisis. Online estate agent Rightmove says asking prices are also down more than usual in the summer. Meanwhile, new numbers Friday from Home Track pointing to an 8% drop in home sales in the capital.
00:01:20
No surprise, then, to hear the country's new finance minister hinting at a hit to public finances. Chancellor Phillip Hammond, currently touring China, says he may have to reset the budget. Now optimists hope the data will pick up after the shock of Brexit wears off. But all eyes are on the Bank of England.
00:01:38
Friday's figures making an August rate cut look all but certain.