British business this month suffered its deepest downturn since mid-2016 as the approach of a national election exacerbated uncertainty about Brexit, according to a survey which augured badly for the economy.

The first "flash" early reading of the IHS Markit/CIPS UK Purchasing Managers' Indexes (PMI) for Britain showed that the decline in both the services and manufacturing sectors has quickened in November.

The readings suggested the world's fifth-biggest economy is contracting at a quarterly pace of 0.2%, although the PMIs have overstated economic weakness recently in part because of higher government spending ahead of Brexit. Still, the outlook for next year looks doubtful: Brexit uncertainty is still weighing on business investment at home, while the U.S.-China trade war has stymied the world economy.

The PMI for the dominant services sector fell to 48.6 in November from 50.0 in October, its lowest level since July 2016, just after the Brexit vote. Readings below 50 denote contraction.

The manufacturing PMI dropped to 48.3 from 49.6 as a stockpiling drive before the aborted Oct. 31 Brexit deadline evaporated.

The composite PMI, which combines the services business activity and services and manufacturing output readings, fell to 48.5 from 50.0, also its lowest level since July 2016.