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Writer's pictureMark Watson-Mitchell

Economic recovery losing steam?

Mike Sheen of Investment Week commenting upon the new lockdown measures stated that the UK’s economic recovery from the impact of the coronavirus pandemic is "at risk of losing steam" with tighter restrictions leading to a sharp slowdown in UK private sector output growth in October, according to the latest IHS Markit data.


He noted that the IHS Markit/CIPS UK Composite Purchasing Managers' Index (PMI), a survey measure of private sector growth, fell to a four-month low of 52.9 this month, down from 56.5 in September, while the Business Activity Index and Manufacturing index also fell to four-month lows.


Weakening of activity is particularly pronounced in the hospitality and transport sectors, with firms rocked by new lockdown measures and customers less eager to spend.


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