The data follow weak Markit reports on the construction and manufacturing sectors, and falling business sentiment, as recorded by the CBI industry association.
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The Nikkei India Services Business Activity Index was at its three month high of 51.9 in July compared with 50.3 in June.
July’s PMI for the services sector was unchanged from the’flash’ estimate of 47.4 released on July 22, down from 52.3 in June and the lowest since March 2009.
However, he said the “unprecedented” monthly drop “has undoubtedly increased the chances of the United Kingdom sliding into at least a mild recession”.
“However, the survey is still indicating only a modest 0.3 percent quarterly rate of economic growth at the start of the third quarter”, he said.
Regionally, there was expansion in all regions with Alberta and British Columbia registering the first gains for 18 months, which suggests stabilisation in the oil sector.
Rob Dobson, senior economist at Markit, said: ‘The pace of contraction was the fastest since early-2013 amid increasingly widespread reports that business activity has been adversely affected by the European Union referendum.
The Bank of England has been provided with fresh evidence of the softness of the economy in the immediate post-Brexit period by a survey showing activity on course to decline by 0.4% in the third quarter of 2016.
It added that purchase price inflation notched up to a five-year high last month, as the fall in sterling, coupled with a rise in metal and commodity prices, drove up import costs.
Policymakers are widely expected to slash rates to a new historic low of 0.25% from 0.5%, while also potentially launching further economy-boosting measures to ward off the threat of recession.
ANZ economists said July’s figures “do not bode well” for China’s economic growth in the second half of the year.
It was the first time since February the official purchasing managers’ index (PMI) showed contraction, and according to a Bloomberg News survey it missed economists’ expectations it would flatline.
“Markit said that the deterioration was widespread across sectors and firm sizes, suggesting that Brexit uncertainty was weighing on many firms”.
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LONDON-Output in the United Kingdom services sector shrank in July at the fastest pace since 2009 following the country’s decision to exit the European Union, according to survey data, a finding that will increase expectations the Bank of England will act on Thursday to cushion the economy.
