Information from IHS Markit's Purchasing Managers' Index, or PMI, demonstrates a tumble to 47.7 in July, the least level since April in 2009. A perusing underneath 50 demonstrates compression.
Both assembling and administration parts saw a decrease in yield and requests.
Nonetheless, sends out got, driven by the debilitating of the pound.
The report studied more than 650 administrations organizations, from divisions including transport, business administrations, figuring and restaurants.It solicited them: "Is the level from business movement at your organization higher, the same or lower than one month back?"
It additionally asked makers whether creation had gone up or down.
The PMI is the primary noteworthy arrangement of information measuring business response to the consequence of the UK choice.
Business Live: Pound tumbles
Chancellor may "reset" financial arrangement
'Record droop'
Chris Williamson, boss financial specialist at IHS Markit, said the downturn had been "most normally credited in somehow to 'Brexit'."He included that the economy could shrink by 0.4% in the second from last quarter of this current year, yet that would rely on upon whether the seen this record tumble to these low levels, was the worldwide money related emergency in 2008/9, the blasting of the website bubble, and the 1998 Asian budgetary emergency," Mr Williamson home-developed, which recommend the effect could be more noteworthy on the UK economy than some time recently.
"This is precisely what most financial analysts were stating would by market analysts as early cautioning indications of what is in the pipeline. At the point when there is a downturn, the PMIs by and large recount the same story.
So this is an upsetting arrangement of results. Be that as it may, it is only one month's worth. It is conceivable this is firm who directed the overview put it, and that the economy will right itself in the coming months.
Likewise, the money related markets have balanced out and in a few territories bounced back, in a change after the vote that was depicted by the IMF as serious yet by and large organized.
All things considered, the study results do expand the odds of some activity from the Bank of England, maybe a financing cost cut in August, or maybe even some extra spending arranges in the chancellor's Autumn Statement. Samuel Tombs, boss UK market analyst at Pantheon Macroeconomics, said the figures gave the "main significant confirmation that the UK is entering that the "certainty stun from the Leave vote may wear off at ETX Capital, said he thought the UK was "setting out toward a retreat once more", and that the information would more likely than not expeditious the Bank of England to take off further boost.
The pound has fallen in light of the distribution of the information.
The UK's new chancellor, point, the PMI information is a measure of supposition, it's not a measure of any hard action in the economy.
"What it lets us know is organizations certainty has been marked, they're not certain, they're in a time of vulnerability now."
Prior on Friday, Mr Hammond said that he may "reset" Britain's financial arrangement.
'Nothing unexpected'
While IHS Markit's perusing on the UK economy was more regrettable than most investigators expected, its decision on the more extensive eurozone economy was more chipper.
Despite the fact that business certainty dropped to a 18-month low, the general pace of monetary development was in accordance with pre-Brexit patterns, and livelihood over the eurozone rose.
The hopeful standpoint is in accordance with remarks Mario Draghi, who said on Thursday that Europe's budgetary markets had "weathered" the vulnerability brought about by the vote.
Europe Economics' Andrew Lilico, who contended amid the submission crusade that leaving the EU would be useful for the UK in the long haul, told the BBC the PMI
let us know much about what Brexit's more drawn out term transient response, and the individuals who voted to leave, included, was "connected with dangers in the worldwide economy," and also Brexit.