UK facing 'worst recession in modern history'

25 Mar 2020

The UK economy is facing its worst recession in modern history after the coronavirus (COVID-19) caused a 'sharp slowdown', according to the latest Purchasing Managers' Index (PMI) survey from data provider IHS Markit.

The survey shows that UK business activity has fallen at a faster rate than at the height of the financial crisis in 2008. The decrease between February and March is the sharpest recorded by the survey since it began in 1998.

The headline figure recorded by the PMI was 37 in March, plunging from 51 in February. Figures above 50 represent growth, while figures below 50 mark a decline. The previous low of 38.1 was recorded in November 2008.

The survey also suggests that the worst is yet to come: it was conducted before the UK government ordered restaurants, pubs, other venues and all non-essential shops to close.

Chris Williamson, Chief Business Economist at IHS Markit, said: 'The surveys highlight how the COVID-19 outbreak has already dealt the UK economy an initial blow even greater than that seen at the height of the global financial crisis.

'With additional measures to contain the spread of the virus set to further paralyse large parts of the economy in coming months, such as business closures and potential lockdowns, a recession of a scale we have not seen in modern history is looking increasingly likely.'

Contact us

Please get in touch with us today by phone, email or enquiry form to arrange your free initial consultation and see how we can help you and your business.

Get in touch »

Client Portal

We can provide you with an online reporting portal that gives you real-time information about your business wherever you are and whenever you need it.

Log in »

Our Newsletter

Why not register to receive our Monthly Newswire? Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register »


IFA
ABTA
Quickbooks Intuit
Copyright

© 2020 Swenta. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Swenta is a limited liability company registered in England and Wales under no. 08343019.
Registered Address as shown.

Contact Us

Please call:
07584092952
02074341143

Addresses
Swenta, Suite 434, The Linen Hall, 162-168 Regent Street, London W1B 5TB
Swenta UAE, Suite 2207, Burlington Tower, Business Bay, Dubai, United Arab Emirates
Swenta Pakistan, Office No.1114, 11th Floor, ISE Tower, Jinnah Avenue, Blue Area, Islamabad, Pakistan