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June 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."

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

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.

UK Government to Provide £10 Billion in Trade Credit Insurance

With businesses across the UK looking to get back to work as soon as possible, the government has stepped in to try and smooth the process. They will provide £10 billion in trade credit insurance to get the market moving again.

What Does This Mean?

Trade credit insurance is used to keep the market moving more freely. This is because it protects companies from the risk of losing money when a company that they do business with goes bust.

May Brought Better News for the Retail Sector but Job Losses Expected in June

The month of May brought some mixed news for the UK’s retail sector, as consumer spending suffered a smaller contraction than in the previous month. However, it was still the second biggest fall since records began, behind only the previous month.

A Look at the Numbers

Retail sales dropped in value by 5.9% in May, when compared to the same month in 2019. This figure comes from the British Retail Consortium (BRC) and KPMG.

British Companies Lower Their Investment Expectations

A new survey of businesses in the UK has revealed that they have reduced their intended investment levels for the rest of 2020. This follows on from the news that the country is likely to suffer a bigger drop in GDP than any of Europe’s other most developed nations.

A Record Drop in Investment

The Institute of Directors (IoD) carried out a survey of its members, to find out the level of confidence in the business world currently. It came back with a record drop in investment intentions of 11%, down to -43%.

600,000 British Workers Fell Off Payroll Between March and May

New figures show how deeply the UK’s employment situation has been affected by the lockdown. With payroll numbers dipping by 600,000 workers, there are fears over how high the unemployment rate could climb. Some critics of the lockdown measures suggest that the 2-metre distancing rule needs to be relaxed or it will lead to further, substantial job losses.

A Look at the Numbers

Bank of England Expands Quantitative Easing but Keeps Interest Rates Steady

The Bank of England has boldly moved to stimulate the country’s economy, by expanding quantitative easing but leaving interest rates at their current levels. The former is tactic that sees extra money pumped into the financial system through the buying up of Government bonds.

What Have They Agreed?

A Productive June Fuels Hopes of a Fast Economic Recovery

After weeks of economic gloom, the lifting of certain restrictions in the UK has coincided with encouraging data from June to date. Could the recovery turn out to be faster than expected?

What Has Happened in June?

The IHS Markit figures for this month show a UK PMI of 47.6. This is still below the crucial 50 mark, but it contrasts to sharp falls in previous months. For example, in May the PMI was just 30.

UK Economy Has Sharpest Decline in 40 Years but V-Shaped Recovery Predicted

The latest figures have revealed that the British economy suffered a bigger contraction in the first three months of 2020 than had been expected. However, it is hoped that a v-shaped recovery will be seen in the rest of the year.

The Latest GDP Figures

New figures show that the country’s GDP plunged by 2.2% in the first quarter of 2020. This was the biggest drop in more than four decades, and was due to the economy being virtually shut down once the coronavirus pandemic appeared.