U.K. Economy Weakens at a Slower Pace in Lighter Lockdown
The U.K. economic slump showed signs of easing in June as parts of the coronavirus lockdown were lifted.
(Bloomberg) -- The U.K. economic slump showed signs of easing in June as parts of the coronavirus lockdown were lifted, allowing more people to return to work.
IHS Markit’s composite Purchasing Managers Index climbed to 47.7 from 30 in May. That’s slightly better than the flash estimate, but still below the 50 mark that separates expansion from contraction.
The question now is how long it will take for output to return to pre-crisis levels. Bank of England Chief Economist Andy Haldane said this week that the economy is faring better than policy makers expected, though the outlook for jobs remains fragile.
“Encouragingly, more than one in four service providers reported an expansion of new business during June, which was commonly attributed to pent-up demand,” said Tim Moore, economics director at Markit. “However, lockdown measures continued to hold back travel and leisure.”
The services PMI rose to 47.1 last month from 29 in May. About a third of survey respondents said activity is still dropping, and employment numbers continued to fall.
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