LONDON – Britain’s private sector economic activity shrank in November to a four-month low on fresh coronavirus restrictions, a key survey showed on Monday, sparking talk of a double dip recession.
The composite purchasing managers' index (PMI) sank to 47.4 points in November, compilers IHS Markit and the Chartered Institute of Procurement and Supply (CIPS) said in a statement.
The shift below 50 – indicating contraction – compared with a reading of 52.1 in October.
The decline coincided with fresh closures of hospitality, leisure and much of the retail sector across the UK.
“A double-dip (recession) is indicated by the November survey data, with lockdown measures once again causing business activity to collapse across large swathes of the economy,” said IHS Markit chief business economist Chris Williamson.
“As expected, hospitality businesses have been the hardest hit, with hotels, bars, restaurants and other consumer facing service providers reporting the steepest downturn.”
Britain’s initial coronavirus lockdown sent the economy tanking into a record recession in the first half of this year.
The economy then enjoyed a historic third-quarter rebound. – AFP, November 24, 2020
