Sterling hit as UK PMI falls to lowest level since financial crisis

UK economy hits a seven-year low

Sterling has fallen over 0.8% as it was revealed Markit's Purchasing Manager's Index (PMI) hit its lowest level since the global financial crisis after last month's Brexit vote.

The PMI shows a month-on-month fall from 52.4 to 47.7 in July, its lowest level since April 2009 and a "dramatic deterioration" in the UK economy, with a reading below 50 indicating economic contraction. However, despite both manufacturing and services sectors seeing a decline in output and orders this month, exports picked up, driven by the weakening of the pound. The readings from the PMI, which surveys more than 650 services companies from a variety of sectors, were worse than many analysts expected. It comes hours after new Chancellor Philip Hammond said he plans to "reset" UK ...