Quite a surprise today that the ONS has the UK economy shrinking by 0.2% in the second quarter.
Just a couple of days ago the services PMI read came out as 54.5, well above fifty and as the largest part of the economy, normally enough to carry the overall GDP numbers up.
However, a further drop in construction and also a drop in manufacturing (where stockpiling for a March Brexit boosted Q1) has been enough to see the economy slide into negative territory.
There is no much good news to be had here, with another Brexit shock due to hit in Q4 there won't be any recovery in Construction or much in Manufacturing - which is hugely hurt by the disaster of diesel car sales which disproportionately UK factories were set up to produce.
Services can help to keep the UK out of outright recession, but it will be touch and go as Politics is set to head into meltdown in September and that itself will temper optimism and business investment, as well we job hiring.
The UK really needs to go sign a Brexit deal and move on. Hard Brexit, on the back of what will already be an ailing economy now, will push us into a nasty recession. Not 2008 levels, but certainly early 90's pain.
The FTSE100 will hold up due to dollar earnings, the 250 and AIM are going to fare less well.