U.K. Economy Shrinks Most on Record Amid Coronavirus Lockdown
U.K. economy contracted at the fastest pace in at least 20 years this month because of coronavirus lockdown.
(Bloomberg) -- The U.K. economy contracted at the fastest pace in at least 20 years this month as the coronavirus lockdown brought commerce to a standstill.
IHS Markit’s Purchasing Managers Index for output fell to 12.9 from 36 in March. Services shrank at a faster pace than manufacturing, though all readings were at a record low.
The figures show the downturn is bigger than the financial crisis a decade ago. Bank of England Governor Andrew Bailey said last week it’s reasonable to expect a 35% drop in the second quarter, and not all of the losses will be recovered.
The initial manufacturing reading came it at 32.9 in April, while services were lower still at 12.3. At least three quarters of firms reported a downturn in activity this month.
The survey was compiled between April 7 and April 21. This flash estimate is based on about 85% of the usual total responses.
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