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May 2020

Disclaimer :
"Any views or opinions expressed in these blogs are solely those of the author and might not represent those of Access Credit Management Limited."

UK PMI for April a Record Low: Grocery Sales Boom But No-one Is Buying Cars

Submitted by admin on Tue, 05/05/2020 - 00:00

The coronavirus pandemic and the subsequent economic impact continue to dominate the financial news around the planet. In the UK, April’s PMI collapsed and virtually no cars are being sold, but supermarkets are continuing to boom.

The PMI figures for April released by Markit show a dramatic drop from March. The composite figures showing all private sector activity nose-dived from a poor 36 in March to a disastrous 13.8 in April.

The Bank of England Looking for a Fast Recovery

Submitted by admin on Wed, 06/05/2020 - 00:00

The latest Bank of England report has confirmed that the British economy is going through its biggest crisis in centuries. Yet, they have also given hope that the bounce back later in the year will be strong and fast.

The Current Situation

The update from the BoE provided the sort of devastating figures that had been expected, as the country’s businesses have suffered during the Covid-19 lockdown. Activity fell by 3% in the initial 3 months of 2020 and a 25% collapse is predicted for the second quarter.

The British Economy Shrank by 2% in the First Quarter of 2020

Submitted by admin on Thu, 14/05/2020 - 00:00

As analysts continue to study the effect of the lockdown on the global economy, it has been revealed that the UK suffered a 2% contraction in the first quarter of this year. In terms of the recovery, it is now believed that it may take a different form from what was originally predicted.

The Full Details

The Office for National Statistics (ONS) released figures showing that the country’s GDP dropped by 5.8% in March. This came after January and February showed a rolling three-month growth rate of 0%.

The UK Could Move to Negative Interest Rates

Submitted by admin on Thu, 21/05/2020 - 00:00

The Bank of England could be getting ready to introduce negative interest rates. Speculation about an interest rate cut has grown due to the country selling a bond with negative yield for the first time in history.

Details of the Bond

The bond in question is a £3.8 billion gilt issue that was auctioned by the Debt Management Office. It is designed to fund the government’s response to the Covid-19 crisis, and comes with a negative interest rate of 0.003%.

UK Government Could Step In to Save Important Companies

Submitted by admin on Wed, 27/05/2020 - 00:00

It has been revealed that the Treasury may step in to save the nation’s most important companies from financial disaster. This news comes as more UK businesses get set to open again following the lengthy lockdown.

More About the Plan

This plan has been given the name Project Birch. State funds will be used to save vital firms that are struggling due to the lockdown crisis. The key phrase is that failure of the company would need to “disproportionately harm the economy” in order for officials to step in and save them.

A Quarter of Businesses to Start Up Again in June

Submitted by admin on Wed, 27/05/2020 - 00:00

As the UK looks to move out of the lockdown phase, many businesses across the country are planning to open up again. A study by the Office for National Statistics (ONS) has revealed some of the figures to bear in mind.

A Look at the Cash Reserves

One of the most worrying figures in this report was the lack of cash reserves that companies hold. 42% of the companies stated that they had less than 6 months of reserves available to them now.

The UK’s Job Subsidy Bill to Reach £100 Billion

Submitted by admin on Mon, 01/06/2020 - 00:00

The total bill for the jobs being subsidised by the British Government continues to grow, despite the moves being made towards the country’s lockdown ending. New reports show that 11 million jobs are currently being paid in this way.

The Full Details

These numbers come from an HMRC report. They say that the cost of propping up so many UK jobs has now hit £24 billion. It is feared that the final bill will pass the £100 billion mark.