UK Economy in Recovery Mode in September but job losses continue
The latest PMI Survey shows the UK economy in recovery mode in September 2020, continuing to grow again following lockdown. However, job losses are also increasing.
What are the figures?
IHSMarkit issue an index number for each survey. If the number is 50 or higher, it means that the economy is growing. If the number is 49.9 or less, it means the economy is contracting.
- UK Economy overall rated as 56.5
The survey issued on 1st October covers September. So September saw another month of strong economic growth, with more companies reporting growth and increased confidence about the next few months. However, at the same time, job losses continued for the seventh successive month.
According to the survey’s Duncan Brock of CIPS;
“September saw another steady improvement in trading conditions as reduced pandemic restrictions fuelled an expansion in services activity.
“New orders from domestic markets grew for the third month in a row, and business-to-business firms enjoyed stronger growth…
…”Once again job losses remained the black spot amidst these pockets of recovery. With the seventh consecutive monthly drop in job numbers, redundancies have replaced job hiring in an attempt to shield firms from rising input costs but these strategies will devastate local communities.”
How does the UK compare with other countries?
So, the UK overall figure was 56.5 How did other similar countries do?
- Germany 54.7
- USA 54.3
- Eurozone* 50.4
- Italy 50.4
- France 48.5
- Japan 46.6
So, although the PMI survey is just that, a survey, it seems likely that the UK economy is growing again and starting to recover from Covid related measures. As the recovery continues, job losses now seems to be a major issue for employers and employees.
Want to learn more or see where the information came from?
Learn more about the IHS Markit PMI surveys here
Learn more about NewsBrokerUK here.
* Eurozone countries are the 19 EU countries that use the Euro currency.
The PMI surveys are put together by a research group called IHS Markit. These surveys are considered a respected source of research which ask companies how they are doing. For example they ask whether orders and sales are up or down. Whilst the PMI surveys are not official economic statistics, they are a useful indicator of how things might be going, and are released before the official numbers.