The Office for National Statistics has started to produce a weekly report detailing the impact of the coronavirus pandemic. The idea is to provide faster data that spots trends and reflects the rapidly changing situation in the economy and society in general.
Lower Turnover
The economic turmoil caused by the coronavirus pandemic and lockdown measures is set to affect many different sectors. Two of the industries that are in the news just now are fashion and financial services.
With companies all over the country struggling for cash and turning to services such as international debt recovery, these industries give us an idea of the problems that could lie ahead in other areas too.
Many Smaller Financial Firms Could Go Bust
It has been revealed that the UK Treasury will extend the overdraft facility that it holds at the Bank of England. This will allow the Government to pay the ever-growing cost of dealing with the coronavirus outbreak.
The Full Details
With speculation increasing that the lockdown measures will be extended further, the Treasury has confirmed that it needs to borrow money to meet the huge financial strain and allow the markets to run as normal.
A recent report suggests that the UK could face a record drop in growth this year. In fact, it is feared that this could be as much as a 35% decline by June.
The Full Details
These figures were provided by the Office for Budget Responsibility, which is the country’s independent tax and spending watchdog. Their numbers are based on the lockdown lasting for a total of 3 months.
It has been revealed that around 20% of the British companies that have applied for the government’s emergency loans have been approved. Around £1.1bn has been paid out to date, but it is feared that the process may be moving too slowly to save some businesses.
The Numbers to Date
6,020 loans worth a total of £1.1bn have been reported as issued at the time of writing. This means that the number of loans provided under the coronavirus business interruption loan scheme has doubled in the space of a week.
The latest figures from the Office for National Statistics (ONS) show that job vacancies were down and unemployment up even before the coronavirus outbreak.
What Are the Numbers?
The recent wave of low PMI figures from across the planet has shocked analysts. With most of humanity locked down for the last month or more, it is no surprise to see business activity collapse.
However, the scale of the drops seen in different countries takes the breath away. Even so, the hugely volatile stock and commodities markets give us hope that there is light at the end of the tunnel.
The Latest PMIs
The latest figures show that retail businesses in the UK have equalled their most dramatic slump in recorded history. With many firms having to close their stores due to the coronavirus pandemic, sales figures for April plummeted.
Details of the Survey
The numbers were collated in a survey that was carried out by the CBI between 27 March and 15 April. They revealed that 71% of the country’s retailers had fewer sales in April when compared to the same month last year.
The economic crisis provoked by the coronavirus outbreak continues to wreak havoc all over the planet. In the latest news, the European economy and the American employment figures are both heavily affected.
The Eurozone Recession
It has been confirmed that both France and Italy have plunged into recession, with the former suffering its worst economic turmoil since World War Two. Indeed, the entire Eurozone is going through the heaviest recession in its history.
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