UK economy set to experience 'deepest recession in living memory'

06 May 2020

The UK economy is set to experience the 'deepest recession in living memory', according to a survey carried out by IHS Markit.

The survey suggested that UK GDP could decrease at a quarterly rate of 7%. However, IHS Markit stated that the actual decline in GDP 'could be even greater'.

Nearly 79% of businesses that provide services, such as hairdressers and restaurants, said that they have seen business activity fall as a result of the coronavirus (COVID-19) lockdown. 

'The data highlights that the downturn in the UK economy during the second quarter of 2020 will be far deeper and more widespread than anything seen in living memory,' said Tim Moore, Economics Director at IHS Markit.

'The April survey reading is consistent with the economy falling at a quarterly rate of approximately 7%, but we expect the actual decline in GDP could be even greater, in part because the PMI excludes the vast majority of the self-employed and the retail sector.'

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