Manufacturers on the march as they spearhead most dramatic economic rebound since records began in 1988
The UK economy has sprung back to life after the lockdown was partially lifted and some businesses allowed to reopen.
As Prime Minister Boris Johnson yesterday confirmed plans to allow firms including pubs, restaurants and hotels to emerge from hibernation, a closely watched report declared the economy is already starting to recover.
Manufacturers spearheaded the most dramatic rebound in economic activity since records began in 1998, according to IHS Markit and the Chartered Institute of Procurement and Supply.
Manufacturers spearheaded the most dramatic rebound in economic activity since records began in 1998, according to IHS Markit and the Chartered Institute of Procurement and Supply
The ‘flash’ estimate for their Purchasing Managers’ Index – where anything above 50 represents growth – rose from 30 in May to 47.6 in June.
This means that the economy is still contracting, but at a much slower pace.
The recovery has fuelled hopes that the economy will start to grow again in the third quarter, having shrunk by a record 20.4 per cent in April.
Non-essential shops opened on June 15, and manufacturing has edged back into growth, with a PMI reading of 50.1, up from 40.7 last month.
The services sector, which includes retail, bounced back from 29 in May to 47.
Chris Williamson, chief business economist at IHS Markit, said: ‘June saw a record rise in the PMI for a second successive month, confirming that the economy is moving closer to stabilising after the worst of the immediate economic impact from the pandemic was felt in April.’