According to Markit, industrial output and new orders slumped in the manufacturing sector, while the service sector was hit particularly hard during July.
The Markit Purchasing Managers Index for services fell to 47.4 in July from 52.3 in the previous month, its lowest reading since April 2009. Manufacturing dipped from 52.3 in June to 47.4. A reading below 50 signifies a contraction.
Chris Williamson, chief economist at Markit, said: “July saw a dramatic deterioration in the economy, with business activity slumping at the fastest rate since the height of the global financial crisis in early-2009.
“The downturn, whether manifesting itself in order book cancellations, a lack of new orders or the postponement or halting of projects, was most commonly attributed in one way or another to Brexit.”
He said that the survey signaled a 0.4% contraction in the economy during the third quarter. However, much of these projections depend on whether there is a further deterioration in August or if July represents a “shock-induced nadir”.
“Given the record slump in service sector business expectations, the suggestion is that there is further pain to come in the short-term at least,” said Williamson.
Howard Archer, chief UK economist at IHS Global Insight, said it was a “truly horrible survey” indicating that the economy was getting a “good kicking as uncertainties and concerns set in”.
Archer said: “Whether it starts in the third or fourth quarter, we suspect that the UK is headed for mild recession, although we expect it to be brief. We currently forecast UK GDP to grow by 1.6% in 2016 – largely due to the first half expansion – and 0.2% in 2017.”
Analysts are widely predicting that the UK central bank will cut interest rates to 0.25% in August to help boost the economy.
KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on February 7, 2022 (Tuesday).
Source: Forex Association of Pakistan. (last update 09:00 AM)
|UK Pound Sterling||GBP||331.71||332.41|
|Hong Kong Dollar||HKD||35.08||35.43|
|New Zealand Dollar||NZD||174.19||176.19|
KARACHI – The gold price in Pakistan dropped by Rs4,300 per tola to reach Rs200,000 on Tuesday as it lost ground on second consecutive day after witnessing mostly bullish trend last week.
As per the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 10 grams of 24 carats gold decreased by Rs3,686 to settle at Rs171,468.
On Monday, the gold price witnessed a drop of Rs200 per tola to close at Rs204,300.
In the international market, the commodity dropped by $1 to reach $1,869 per ounce.
Meanwhile, silver prices in the domestic market slumped by Rs20 per tola and Rs17.14 per 10 grams to reach at Rs2,230 and Rs1,911, respectively.