According to the figures published on Thursday, the manufacturing and services industries of the UK in this month are suffering the greatest failure on record. It is because the Bank of England policymaker alerted that the UK economy could face the deepest hard times.
A member of the Bank of England, Gertjan Vlieghe, said that the UK economy was advancing towards a crunch on incomes, which was exceptional in its severity and speed. He also said that based on early indicators and experience on other nations that had been hit a little bit earlier than the UK, it seemed that they were experiencing an economic recession, which was deeper and faster compared to anything that they had seen in their past century.
The Upcoming Future
The nation is expected to face hard times in the first half of this year after greater parts of the economy were imposed to close, and workers stay at home to minimize the transmission of COVID-19 outbreak.
Data firm HIS Markit reports that – its UK composite PMI, which tracks the activity throughout the manufacturing and services sectors, crashes to 12.9 for this month that was 36 in March. This is a record since the survey that started in the 90s. This slump is far below the prediction of the economists. The PMI value of greater than 50 indicates the development of the business activity.
In the middle of the warnings, IHS Markit said that the drop in the activities in the UK and the eurozone was one of the worst phenomena since it began surveying businesses. Manufacturing, as well as services companies, stated a crash in business, with the manufacturing PMI dropped to 16.6 from 43.9 (in March). IHS Markit also said that 80% of the service companies in the UK reported a notable drop in activity in April.