The dominant sector of the British economy is tumbling towards a recession

Britain's services sector, which accounts for more than 75% of the country's GDP, is tumbling towards a recession, according to the latest PMI data released by Markit and the Chartered Institute of Procurement & Supply on Wednesday morning.

The headline reading, which gives a number out of 100, came in at 47.4 for July, confirming the bleak flash estimates provided by Markit and CIPS on July 22, and marking the first contraction in the services sector in more than four years. The reading also showed the sharpest decline in both output and new business in the services sector in more than seven years.

The purchasing managers index (PMI) figures from Markit are given as a number between 0 and 100.

Anything above 50 signals growth, while anything below means a contraction in activity - so the lower the number is, the worse things look for the UK.

Speaking about the data, Markit's chief economist, Chris Williamson, said (emphasis ours):

"The marked service sector downturn follows news from sister PMI surveys showing construction activity suffering its steepest decline since mid- 2009 and manufacturing output contracting at the fastest rate since late-2012. At these levels, the PMI data are collectively signalling a 0.4% quarterly rate of decline of GDP.

"It's too early to say if the surveys will remain in such weak territory in coming months, leaving substantial uncertainty over the extent of any potential downturn. However, the unprecedented month-on-month drop in the all-sector index has undoubtedly increased the chances of the UK sliding into at least a mild recession."

Here is Markit's terrifying chart, showing just how massive the contraction in post-Brexit Britain has been so far:

When Markit released its flash reading in July, Williamson noted that the economy "saw a dramatic deterioration," in July, and that "dramatic deterioration" has now been confirmed.

Wednesday's reading is just the latest in a series of horrible data points for the British economy since the referendum and shows just how likely it is that a recession is now on the cards in the UK. On Monday, Markit's numbers for the UK's manufacturing sector showed a similarly horrible fall in sentiment.

More to follow...