According to credible sources, Britain’s economic recovery from the COVID-19 pandemic lost its momentum in the month September, and has affected several consumer-facing sectors including restaurants.
The economic slump comes along the heels of the recent government’s announcement of new lockdown regulations that require corporate employees to again adopt the work from home practice, while restaurants and pubs being compelled to close by 10 p.m.
Reportedly, the IHS Markit/CIPS flash composite PMI (Purchasing Managers’ Index), in a span of three months, dipped from 59.1 to 55.7, surpassing the estimations laid out by economists.
It is to be noted that the British GDP plunged by 20% in the second quarter of 2020 as the imposed lockdowns hammered the manufacturing sectors of the country. This quarterly contraction is by far the biggest among those faced by comparable G7 economies, sources claimed.
The Bank of England has also predicted Britain’s third-quarter output to be around 7% below its crisis level, cited sources close to the matter.
Chief Business Economist at HIS Markit, Chris Williamson, was reported saying that the restaurant sector is a primary victim of the recession, mainly due to the withdrawal of the ‘Eat Out to Help Out’ scheme. He further expressed his concerns regarding the anticipated rise in unemployment and other redundancies to take place over the coming months.
Several businesses have reportedly claimed that they have laid off staff members for seven consecutive months and that many employees are heavily dependent on the government’s job retention scheme. In fact, based on market speculations, the unemployment rate is estimated to rise from 4.1% to 7.5% in the last quarter of this year.
In other developments, U.S.-based multinational investment bank, JPMorgan Chase & Co. is reportedly moving its assets worth over USD 234 billion from United Kingdom to Germany as a result of Britain exiting the European Union, cite reliable sources.