You can follow us on social media and sign up for The Readout newsletter.
The political storm that led to the resignation of the Prime Minister has made the outlook for businesses worse.
S&P Global's survey of private sector purchasing managers fell to 47.2 in October, well below the 48.1 reading that economists had expected.
According to the research company, the economy will shrink in the fourth quarter of this year.
The implosion of the government was caused by the backfired plan to slash taxes. S&P said that output is falling faster than at any point since the global financial crisis.
The Chief Business Economist at S&P Global Market Intelligence said that the pace of economic decline gathered steam after the recent political and financial market turmoil. GDP is likely to fall. The United Kingdom is in a recession.
The report blames political leaders for the economy's decline. A leadership contest will bring a third prime minister to office this year after the resignation of Truss as leader of the Conservative Party.
According to the survey, higher borrowing costs and uncertainty about the political situation are weighing on executives. The steep drop in output suggests that manufacturers are not benefiting from the pound's decline.
Business confidence has fallen to a level unseen before in 25 years of survey history. Investment and employment will suffer as companies adapt to the challenging environment. The hiring is slow.
Harumi Ichikura assisted.
All Rights Reserved © 2024
