UK PMIs in focus this week – RBC CM

Research Team at RBC Capital Markets, suggests that the one-off release of UK’s ‘flash’ PMIs by Markit means that a lot of the information we would normally get from these surveys has already been published for July.

Key Quotes

“Therefore, confirmation would confirm indications of a dramatic slowdown for the UK economy after the EU referendum. Crucially, for the manufacturing and services sector—and hence the composite index—the headline PMI numbers fell from above to below 50, indicating an outright contraction in output. It remains to be seen whether those depressed levels are sustained throughout Q3, but we think it is entirely possible that, following growth of 0.6% q/q in Q2, there could be a small contraction in Q3 based on this early post-referendum survey evidence.”