FOREX TradingCharts.com

Financial News: UK Private Sector Logs Sharp Contraction In May

UK Private Sector Logs Sharp Contraction In May

05/21/2020 - 08:13:00 (RTTNews)

(RTTNews) - UK private sector output remained on a steep downward trajectory in May as lockdown to curb the spread of coronavirus, or Covid-19, weighed on almost all business activity, the flash survey results published by IHS Markit revealed on Thursday.

The flash IHS Markit/Chartered Institute of Procurement & Supply composite output index rose to 28.9 in May from 13.8 in April. The score was also above the expected 25.7.

Nonetheless, the latest reading signaled a far steeper pace of contraction than at the worst point of the global financial crisis.

Chris Williamson, chief business economist at IHS Markit, said GDP is likely to fall by almost 12 percent in 2020.

While the quarterly rate of decline looks likely to peak at around 20 percent in the second quarter, the recovery will be measured in years not months, Williamson noted.

The nature of the PMIs makes them tricky to interpret, but the rise in the composite PMI in May probably shows that April was the low point for activity, and that the slight easing in the lockdown on May 13 has led to some businesses reopening, Andrew Wishart, an economist at Capital Economics, said.

The services Purchasing Managers' Index came in at 27.8 in May, up from 13.4 in April and above economists' forecast of 25.0.

Similarly, the manufacturing PMI advanced to 40.6 in May from 32.6 in the previous month. This was also well above economists' expectations of 36.0.

The survey showed that lower volumes of business activity were almost exclusively linked to business shutdowns, cancellations of customer orders and a general slump in demand amid the coronavirus pandemic.

The survey showed rapid declines in new work and employment across the private sector in May due to severe lack of new business to replace completed contracts.

Due to discounting strategies, average prices charged across the service sector decreased in May. Input prices were lower as fuel prices and payroll expenses decreased from April.

Manufacturers bucked the overall trend, with respondents noting that rising freight costs, the need to source alternative suppliers and exchange rate depreciation had all pushed up purchasing prices.

Meanwhile, overall business expectations for the next 12 months continued to improve from the series record low seen in March.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


European Economics Preview: Eurozone Economic Confidence Data Due (21 min(s), 55 sec(s) ago)
(RTTNews) - Economic sentiment from euro area and preliminary inflation from Germany are due on Th ...Full Story»

Korea Rate Decision On Tap For Thursday (08 min(s), 05 sec(s) ago)
(RTTNews) - The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announ ...Full Story»

Slovenia Retail Sales Fall At Slower Pace (27 min(s), 05 sec(s) ago)
(RTTNews) - Slovenia's retail sales declined at a slower pace in April, data from the Statisti ...Full Story»

Malta Producer Prices Rise In April (28 min(s), 05 sec(s) ago)
(RTTNews) - Malta's producer prices rose in April after falling in the previous month, data fr ...Full Story»

Sweden Producer Prices Decline Slows In April (49 min(s), 05 sec(s) ago)
(RTTNews) - Sweden's producer price declined at a softer pace in April, figures from Statistic ...Full Story»

Lithuania Retail Sales Decline In April (48 min(s), 05 sec(s) ago)
(RTTNews) - Lithuania's retail sales declined at a faster rate in April amid government measur ...Full Story»

Hungary Jobless Rate Rises In April (48 min(s), 05 sec(s) ago)
(RTTNews) - Hungary's jobless rate rose during the February to April period, data from the Hun ...Full Story»

Eurozone Likely To Contract 8-12% In 2020, ECB Chief Says (13 min(s), 05 sec(s) ago)
(RTTNews) - European Central Bank President Christine Lagarde said the euro area economy is likely ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

European Economics Preview: Eurozone Economic Confidence Data Due

05/28/2020 - 00:30 AM (RTTNews)
(RTTNews) - Economic sentiment from euro area and preliminary inflation from Germany are due on Th ...Full Story>>

Korea Rate Decision On Tap For Thursday

05/27/2020 - 18:00 PM (RTTNews)
(RTTNews) - The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announ ...Full Story>>

Malta Producer Prices Rise In April

05/27/2020 - 07:20 AM (RTTNews)
(RTTNews) - Malta's producer prices rose in April after falling in the previous month, data fr ...Full Story>>

Slovenia Retail Sales Fall At Slower Pace

05/27/2020 - 07:19 AM (RTTNews)
(RTTNews) - Slovenia's retail sales declined at a slower pace in April, data from the Statisti ...Full Story>>

Sweden Producer Prices Decline Slows In April

05/27/2020 - 06:41 AM (RTTNews)
(RTTNews) - Sweden's producer price declined at a softer pace in April, figures from Statistic ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.