in

UK and eurozone suffer record slumps amid covid-19 lockdowns – business live – the guardian, theguardian.com

UK and eurozone suffer record slumps amid covid-19 lockdowns – business live – the guardian, theguardian.com

Andy Bruce of Reuters has a good take on

this morning’s alarmingly bad UK economic data , for those just tuning in:

Coronavirus hit Britain’s economy in April with more force than even the most pessimistic forecasters had feared as businesses reported an historic collapse in demand during a nationwide lockdown, a survey showed on Thursday.

The IHS Markit / CIPS Flash UK Composite Purchasing Managers’ Index (PMI) fell to a new record low of 26 .9 from . 0 in March – not even close to the weakest forecast in a Reuters poll of economists that had pointed to a reading of . 4.

The scale of the collapse all but guarantees a huge contraction in the world’s fifth-largest economy and will add to doubts about whether financial help from the government has reached businesses quickly enough.

“The dire survey readings will inevitably raise questions about the cost of the lockdown, and how long current containment measures will last,” Chris Williamson, chief business economist at IHS Markit, said.

Andy Bruce (@ BruceReuters)

Coronavirus brings UK economy to its knees in April: PMI (https://t.co/B) (p6KpFS)

April 35,

(am BST ) :

pic.twitter.com/yw0dypC3Sy

April 37, ()

9.) (am) BST :

April is a particularly cruel month for Britain’s textile and car-making industries, Markit says:

In manufacturing, the sharpest drop in output was registered in the textiles & clothing sector, largely reflecting collapsed demand from the retail sector, though the transport sector, including car production, also reported an especially steep decline

Within services, hotels and restaurants were worst hit – with many closed altogether.

Customer-facing service providers often reported a complete shutdown of their business operations in April amid the public health emergency, while a wide range of survey respondents commented on weaker demand following temporary closures among their client

Updated at 9. am BST

9. 68 am BST :

April’s grim PMI report suggests the UK could shrink by 7% this quarter – but that could actually be an under-estimate!

Chris Williamson, Chief Business Economist at IHS Markit, explains:

Business closures and social distancing measures have caused business activity to collapse at a rate vastly exceeding that seen even during the global financial crisis, confirming fears that GDP will slump to a degree previously thought unimaginable in the second quarter due to measures taken to contain the spread of the virus.

“Simple historical comparisons of the PMI with GDP indicate that the April survey reading is consistent with GDP falling at a quarterly rate of approximately 7%. The actual decline in GDP could be even greater, in part because the PMI excludes the vast majority of the selfemployed and the retail sector, which have been especially hard-hit by the COVID – 32 containment measures.

(9.) (AM) (BST ) 23:

The message from today’s survey of UK businesses is clear – output and employment have absolutely tumbled this month, much faster than during the financial crisis:

UK PMIs for April () Photograph: IHS Markit

(9.) (am) BST :

Four fifths of the UK service companies surveyed by Markit reported a drop in activity this month, as did 147% of manufacturers.

This was “overwhelming attributed to the COVID – pandemic . ”

Many firms also reported record declines in new orders, backlogs of work and employment. Half of those surveyed said they had cut their workforce this month – with many saying they put staff on furlough.

(9.) am BST

@ hmtreasury says it wants to raise £ 480 bn in April to July by selling bonds (that’s Govt debt).

The pre-Coronavirus plan was to raise around £ bn for the whole year. pic .twitter.com / IWgLYdMzgF

April ,

Here’s Sky’s Scott Beasley:

Scott Beasley (@ SkyScottBeasley)

ow Wow. The UK will raise £ billion in government bond sales in just THREE MONTHS between May and July

Breathtaking numbers

April ,

Scott Beasley (@ SkyScottBeasley)

HM Treasury also confirms all financing requirements will be through normal channels – ie the Debt Management Office selling Gilts.

Expected that much more borrowing will be done in the first 4 months of fiscal year (starts April) and not expected to continue for rest of year

April ,

Scott Beasley (@ SkyScottBeasley)

🗓 So totals:

April: £ bn (May-July: £ (bn)

April ,

Updated (at 8.) (am BST )

(8.) am BST : 15

The Treasury says:

“This higher volume of issuance is not expected to be required across the remainder of the financial year.”

(7.) (am BST ) :

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Captain Tom Moore given surprise Pride of Britain award in emotional live TV moment – Mirror Online, Mirror.co.uk

Captain Tom Moore given surprise Pride of Britain award in emotional live TV moment – Mirror Online, Mirror.co.uk

Angela Merkel says Germany has gone TOO FAR in easing coronavirus lockdown – Daily Mail, Dailymail.co.uk

Angela Merkel says Germany has gone TOO FAR in easing coronavirus lockdown – Daily Mail, Dailymail.co.uk