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UK: That sinking feeling...
The UK’s purchasing managers indicator surveys suggests that the economy is stagnating as we approach Brexit day. With no deal in sight, business and consumer caution will only intensify, risking a 1Q contraction We already knew that the manufacturing PMI had softened, but was at least growing due primarily to Brexit-related precautionary inventory building. Yesterday’s construction survey saw growth slow more markedly to 50.6 – barely above the break-even level of 50 that signals expansion or contraction. Today, we have had the services PMI and the news is even more grim. The headline index dropped to 50.1 – ... (full story)