It's been one month since the U.K. voted to leave the European Union and British businesses are already taking a major hit.
New data from IHS Markit showed Friday an early reading of factory and services activity in July revealed the sharpest decline in output since the height of the global financial crisis
The group's flash purchasing managers index, which tracks the whole economy, slumped sharply to its lowest level in more than seven years in the aftermath of the June 23 referendum. Output and new orders both fell for the first time since the end of 2012.
Markit's services purchasing managers' index, which tracks sales, employment, inventories and prices, slumped to 88-month low of 47.4 in July, from 52.3 in June.
A reading below 50 signals contraction in the crucial services sector. Services make up 80% of the U.K. economy.
Figures are showing factories are also feeling the pain, with Markit's manufacturing index falling to its lowest level in more than three years.
The pound has plunged 12% against the dollar since the referendum. That should boost exporters, but other manufacturers could be hit by higher import costs.
The pound sterling fell after the survey was released on Friday, having risen 0.3% before the data came out and dipped 0.4% afterward.
