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Bloomberg
The UK economy started to bounce back from the coronavirus this month as an early indicator of activity jumped.
IHS Markit’s composite Purchasing Managers Index climbed to 47.6 from 30 in May. While that’s still below the critical 50 mark that separates expansion from contraction, the size of the monthly gain was the biggest since the survey began in 1998.
Prime Minister Boris Johnson is easing parts of the lockdown that’s been in place since March, allowing activity to start picking up again. The damage has been immense. Markit predicts that UK output will fall 11.9% this year and only recover 4.9% in 2021.
“The economy is moving closer to stabilising after worst of the economic impact from Covid-19 was felt back in April,†said Chris Williamson, chief business economist at Markit. “The longer term recovery prospects remain highly uncertain.â€
The manufacturing output index climbed to 50.8 while the services sector activity measure rose to 47. The survey is flash estimate is based on about 85% of the usual total responses.