UK Economic Recovery Powers Ahead But Job Losses Increase.
The UK economic recovery continues to power ahead according to a recent business survey from PMI. At the same time, job losses also continue.
The survey looks at orders and production in both services and manufacturing in our economy.
The PMI survey then allocates a number to the economy. If the number is 50 or over that means the economy is expanding.
The UK figure is 59.1 and this indicates the economy is expanding at the fastest rate since 2014.
However it is not all good news.
At the same time as business starts to recover from the lockdown and recession, many companies are also being forced to implement job losses.
According to the PMI survey;
“A further surge in service sector business activity in August adds to signs that the economy is enjoying a mini boom as business re-opens after the lockdowns, but the concern is that the rebound will fade as quickly as it appeared.
The current expansion is built on something of a false reality, with the economy temporarily supported by measures including the furlough and Eat Out to Help Out schemes. These props are being removed.
The burning question is how the economy will cope as these supports are withdrawn. Worryingly, many companies are already preparing for tougher times ahead, notably via further fierce job cutting, the rate of which re-accelerated in the service sector in August to a pace exceeding that seen at the height of the global financial crisis.” (our emphasis).
As the UK economic recovery continues with a reading of 59.1; how does the UK compare to other similar countries?
- Germany 54.4
- Ireland 54.0
- Eurozone 51.9
- France 51.6
- Italy 49.5
- Spain 48.4
Want to learn more?
Read the IHS Markitt PMI press release here
Find out more about NewsBrokerUK here.